FHA Loan Limits To Rise
Legislation needed to increase FHA mortgage loan limits is moving forward. The Department of Housing and Urban Development (HUD) plans to publish the new FHA loan limits in a special Mortgagee Letter, were issued this March, it was learned from a HUD teleconference. Also, HUD will be recalculating the median home prices that are used to calculate the loan limits. The new limits will be based on 125 percent of the median home price in counties across the country, and will be capped at $729,750.
The new rules are part of the Economic Stimulus Package signed by the president on February 13. They will expire after one year, unless renewed at that time. HUD officials say that more comprehensive FHA reform should be moving through Congress in coming weeks. "Raising the loan limits will have an immediate and powerful impact on families across America, particularly in high-cost areas," said George Hanzimanolis, president of the National Association of Mortgage Brokers. It will open the homeownership door of opportunity to many families who could not previously afford a home or qualify for financing. The combination of increased FHA loan limits and today's low rates creates this significant opportunity.
For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wachovia Mortgage Corp. at (800) 741-7813 or 910-692-6225.
More like this story