Another mortgage hurdle? Sheesh!

On October 1, 2011, the cost of a mortgage could rise significantly. Current FHA and GSEs mortgage loan limits are scheduled to decrease, lessening the availability of mortgage credit. Lowering the loan limits will force buyers to come up with larger down payments.

The new limits, published by HUD and the Federal Housing Finance Agency (FHFA), show that more than 669 counties in 42 states and the territories will be negatively impacted. The average decline in loan limits will be more than $68,000. Monroe County will be the hardest hit within Florida. The current FHA loan limit in Monroe is $729,750, but as of October 1st the mortgage limit is scheduled to drop to $529,000 a difference of ($200,750)

The timing couldn't have come at a worse time, just when the housing market has shown just a bit of light. Now this move could again hold back the housing recovery.