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FDA Home Loan Limits | |
Higher FDA Home Loan LimitsMortgage rates near historic lows. FHA (Federal Housing Administation) raises loan amounts - More loans now qualitfy for FHA rates. For lowest rates, click here: FHA Express - The quick way to get an FHA loan! Fill out the (no obligation) form there. March'08, in an effort to significantly improve the complicated, unclear and costly homebuying process, the U.S. Housing and Urban Development proposed mortgage reform designed to help consumers better understand their loan terms so that they can shop more effectively for the largest purchase of their lives. HUD is proposing to offer consumers a standard Good Faith Estimate (GFE) that will substantially enhance disclosure of all important aspects of the loan, including: The interest rate and monthly payment; Whether the interest rate and principal balance can increase and by how much; and Whether the loan has a prepayment penalty or balloon payment. Some tie ago The HUD (U.S. Department of Housing and Urban Development) announced (Jan.'06) higher FHA (Federal Housing Administration) home loan limits helping more americans to become homeowners. The FDA has increased its 'single family' home loan/mortgage limits by more than 15 percent. Form January 1, 2006, the FHA will insure single-family home mortgages up to $200,160 in standard areas and up to $362,790 in high cost areas. The high cost amount is almost $50,000 more than last year. The home loan limits for two-, three- and four-unit dwellings also increased. FHA notifies thousands of mortgage lenders and brokers to make them aware of the higher rates that can help families. "This Administration is working to make homeownership more affordable and accessible so that more families can own a piece of the American Dream," said Jackson. " These higher loan limits will strengthen the economy by helping to create more construction and more jobs, while contributing to the President's commitment to create 5.5 million new minority homeowners by the end of the decade." Last year, the mortgage limits were $172,632 in standard areas and $312,895 in high cost areas. 5 years ago, the limits ranged from just $132,000 to $239,250. These levels were below the cost of many homes in many communities. As a result, families who needed FHA mortgage insurance to qualify to buy a home were effectively locked out of the process. The new home loan limits are part of an annual adjustment HUD makes to account for rising home prices. Under federal law, loan limits are tied to the conforming home loan limits of Freddie Mac and Fannie Mae, federally chartered corporations that buy and package mortgages. HUD calculates the FHA mortgage loan limit for 3,226 geographic areas within the United States. The limits vary from area to area, but all fall within the new rage of $200,160 to $362,790. Higher FHA loan limits don't cost the government any money, because the FHA Insurance Fund is fully supported by premiums paid by borrowers who receive FHA insurance. Many low income and first time homebuyers are attracted to FHA-insured loans because the agency requires only a 3% down payment. The increases will also benefit senior citizens who qualify for FHA-insured reverse mortgages. Reverse mortgages allow homeowners age 62 and older to borrow against the value of their homes without selling them. Homeowners can select a lump-sum payment, monthly payments or tap into a line of credit. No repayment is required as long as a homeowner lives in a home with a reverse mortgage. The reverse mortgage is repaid, with interest, when a homeowner sells the home or dies. Quicken Home Loans FHA Mortgage Refinance Leads Tennessee, Michigan & other States Quickenhomeloans, Quickenloan (quickin loan, kwikin loan, loan qwickin, kwickin loan, kwicken loan) Top of this FDA Home Loan Limits page.
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