In February, President Bush signed a bill that made a temporary increase to both conforming and FHA loan limits. The U.S. Department of Housing and Urban Development (HUD) recently released the new limits, which range from $271,050 to $729,750 depending on the county.
Previously, they were capped at $362,790. With FHA loans rising in popularity, especially among first-time homebuyers, these new limits could have a very positive impact. However, the changes are currently set to expire December 31, 2008, so you should act now to take advantage.
Benefits to Homebuyers
Many borrowers who were shopping in markets where entry-level homes were above the FHA loan limit may now be able to obtain an FHA loan. The most incremental change is likely to occur at entry-level and first-time move-up prices. The effects are also expected to have the greatest and most immediate impact in markets where entry-level home prices were above the previous FHA limits, such as California.
According to a statement released by the Federal Housing Administration, the change in loan limits will “give nearly 240,000 additional homeowners and homebuyers a safer, more affordable mortgage alternative.”¹
Because FHA focuses on 30-year fixed rate mortgages, homeowners may be able to avoid some of the risks associated with subprime mortgage products. Click here to view the new FHA loan limits for counties across the nation.
FHA: Fast Facts
If you are unfamiliar with FHA loans, here are a few facts to know. One important point is that FHA does not actually loan money to the buyer. Financing is obtained through a mortgage company such as HomeAmerican Mortgage Corporation.
FHA insures the lender against loss if the buyer defaults on the mortgage. The lender still has the final decision of whether or not to loan the buyer money, but having the FHA insurance can help them in making their loan decision.
In addition to offering insurance to the lender, FHA loan programs can offer many benefits. These are a few of the advantages:
Flexible qualification: FHA programs offer more flexible qualification, allowing more borrowers to obtain financing.
Less than perfect credit: FHA loans are often more forgiving of a buyer’s credit history. For example, buyers may still be able to qualify if they’ve had a bankruptcy as recently as two years ago.
Low down payment: Homebuyers typically only need 3-5% for their down payment, and this money may be a gift from a family member or other acceptable source.
How to Learn MoreHomeAmerican Mortgage Corporation (HMC) often offers special limited-time programs that enhance the benefits of FHA loans and provide exceptional value for homebuyers.
To learn about current programs and how to qualify, call a HomeAmerican Mortgage Consultant toll-free at 866-400-7126.
Sources:¹ Federal Housing Administration. New Loan Limits to Help Homeowners – Economy. Retrieved April 7, 2008, from http://portal.hud.gov/portal/page?_pageid=33,717234&_dad=portal&_schema=PORTAL
Thursday, July 17, 2008
Mortgage Solutions: FHA Loan Limits and Features
In February, President Bush signed a bill that made a temporary increase to both conforming and FHA loan limits. The U.S. Department of Housing and Urban Development (HUD) recently released the new limits, which range from $271,050 to $729,750 depending on the county.
Previously, they were capped at $362,790. With FHA loans rising in popularity, especially among first-time homebuyers, these new limits could have a very positive impact. However, the changes are currently set to expire December 31, 2008, so you should act now to take advantage.
Benefits to Homebuyers
Many borrowers who were shopping in markets where entry-level homes were above the FHA loan limit may now be able to obtain an FHA loan. The most incremental change is likely to occur at entry-level and first-time move-up prices. The effects are also expected to have the greatest and most immediate impact in markets where entry-level home prices were above the previous FHA limits, such as California.
According to a statement released by the Federal Housing Administration, the change in loan limits will “give nearly 240,000 additional homeowners and homebuyers a safer, more affordable mortgage alternative.”¹
Because FHA focuses on 30-year fixed rate mortgages, homeowners may be able to avoid some of the risks associated with subprime mortgage products. Click here to view the new FHA loan limits for counties across the nation.
FHA: Fast Facts
If you are unfamiliar with FHA loans, here are a few facts to know. One important point is that FHA does not actually loan money to the buyer. Financing is obtained through a mortgage company such as HomeAmerican Mortgage Corporation.
FHA insures the lender against loss if the buyer defaults on the mortgage. The lender still has the final decision of whether or not to loan the buyer money, but having the FHA insurance can help them in making their loan decision.
In addition to offering insurance to the lender, FHA loan programs can offer many benefits. These are a few of the advantages:
Flexible qualification: FHA programs offer more flexible qualification, allowing more borrowers to obtain financing.
Less than perfect credit: FHA loans are often more forgiving of a buyer’s credit history. For example, buyers may still be able to qualify if they’ve had a bankruptcy as recently as two years ago.
Low down payment: Homebuyers typically only need 3-5% for their down payment, and this money may be a gift from a family member or other acceptable source.
How to Learn MoreHomeAmerican Mortgage Corporation (HMC) often offers special limited-time programs that enhance the benefits of FHA loans and provide exceptional value for homebuyers.
To learn about current programs and how to qualify, call a HomeAmerican Mortgage Consultant toll-free at 866-400-7126.
Sources:¹ Federal Housing Administration. New Loan Limits to Help Homeowners – Economy. Retrieved April 7, 2008, from http://portal.hud.gov/portal/page?_pageid=33,717234&_dad=portal&_schema=PORTAL
Previously, they were capped at $362,790. With FHA loans rising in popularity, especially among first-time homebuyers, these new limits could have a very positive impact. However, the changes are currently set to expire December 31, 2008, so you should act now to take advantage.
Benefits to Homebuyers
Many borrowers who were shopping in markets where entry-level homes were above the FHA loan limit may now be able to obtain an FHA loan. The most incremental change is likely to occur at entry-level and first-time move-up prices. The effects are also expected to have the greatest and most immediate impact in markets where entry-level home prices were above the previous FHA limits, such as California.
According to a statement released by the Federal Housing Administration, the change in loan limits will “give nearly 240,000 additional homeowners and homebuyers a safer, more affordable mortgage alternative.”¹
Because FHA focuses on 30-year fixed rate mortgages, homeowners may be able to avoid some of the risks associated with subprime mortgage products. Click here to view the new FHA loan limits for counties across the nation.
FHA: Fast Facts
If you are unfamiliar with FHA loans, here are a few facts to know. One important point is that FHA does not actually loan money to the buyer. Financing is obtained through a mortgage company such as HomeAmerican Mortgage Corporation.
FHA insures the lender against loss if the buyer defaults on the mortgage. The lender still has the final decision of whether or not to loan the buyer money, but having the FHA insurance can help them in making their loan decision.
In addition to offering insurance to the lender, FHA loan programs can offer many benefits. These are a few of the advantages:
Flexible qualification: FHA programs offer more flexible qualification, allowing more borrowers to obtain financing.
Less than perfect credit: FHA loans are often more forgiving of a buyer’s credit history. For example, buyers may still be able to qualify if they’ve had a bankruptcy as recently as two years ago.
Low down payment: Homebuyers typically only need 3-5% for their down payment, and this money may be a gift from a family member or other acceptable source.
How to Learn MoreHomeAmerican Mortgage Corporation (HMC) often offers special limited-time programs that enhance the benefits of FHA loans and provide exceptional value for homebuyers.
To learn about current programs and how to qualify, call a HomeAmerican Mortgage Consultant toll-free at 866-400-7126.
Sources:¹ Federal Housing Administration. New Loan Limits to Help Homeowners – Economy. Retrieved April 7, 2008, from http://portal.hud.gov/portal/page?_pageid=33,717234&_dad=portal&_schema=PORTAL
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