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The government published the 2009 FHA Loan Limits for all 3,141 counties in the United States.  As expected, loan limits will recede from their temporary levels of 2008.

As in 2008, the 2009 FHA loan limits are based on the number of units in the property -- from 1-unit to 4-unit:

• 1-unit : $271,050
• 2-unit : $347,000
• 3-unit : $419,400
• 4-unit : $521,250

Now, it's important to note that the new FHA loan limits only apply to most areas of the country -- Hamilton County, Ohio, for example.  But, in other areas -- classified as "high cost" areas -- the FHA will insure higher loan sizes in 2009 than the 1- to 4-unit figures listed above.

"High cost" areas are calculated using mathematics and typical home prices. 

If a county's median home price multiplied by 1.15 is larger than that FHA loan limit listed above, the product is that county's new 2009 FHA loan limit, not to exceed $625,500.  In Illinois, therefore, high cost areas include Cook County and the collar counties, and in Ohio, it includes Franklin County.

And don't worry about doing the math yourself -- you can download this county-by-county PDF of 2009 FHA Loan Limits as a good reference point.  Plus, it has my contact information for when you have questions.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.