Saturday, October 1, 2011

FHA Loan Limits Decreased

UPDATE: As of October 7, 2014, Fannie Mae retired the HomePath Mortgage Product

As of today the temporary FHA loan limits have expired and home seekers in the market to purchase a higher priced home may have to shell out a little more for the down payment on their home mortgage. The loan limits were increased in 2008 through the Economic Stimulus Act in a effort to resuscitate the housing market. The limits are based on the median sales price and vary by county. To find the FHA limit for your area search HUD's link here.

There are still low to no down mortgage options for home buyers in a higher price range. There's the VA loan for qualified Veterans, USDA Rural for qualified properties and incomes, HomePath and HomeSteps for Fannie and Freddie REO's,  or Conventional paired with your choice of mortgage insurance. This may be structured either as a monthly premium, a split or single premium which may be financed into the loan. Comparing loan programs is critical when buying a home, make sure you take the time to clearly understand all of your financing options options. If you would like more information you may contact me for an appointment.

Additional resources: