Come October 1, 2011 the loan limits for FHA mortgages will be reduced in many parts of the country.  Some would have you believe this will be disastrous for the housing market....



But will there really be that much of an impact on the housing market because of these new loan limits?   Alan Zibel at the Wall Street Journal explores this, wondering whether the changes really matter....



Beyond the possibility that these changes might not even matter much nationally, it's also important to note that....

• Only 2% of FHA borrowers in Virginia would be affected.  Of the 39,055 FHA loans issued during 2010, only 909 of these loans (2%) would no longer be issued based on adjusted loan limits in various areas in Virginia.  (source)
    
  
• The FHA loan limits are not changing in Harrisonburg and Rockingham County.  The current FHA loan limit for Harrisonburg and Rockingham County is $277,150 for a single family home.

Look up the loan limits in your local area by clicking here.