With the new FHA loans, home buyers can now buy more and homeowners can refinance out of unaffordable mortgages into more secure loans. The Federal Housing Administration raised the limits; these limits will only be effective for about a year. Although, there is legislation in the works to make the limits permanent.
Riverside and San Bernardino FHA loans have climbed from limits of $362,00 to $500,000.
Many mortgage brokers were pleasantly surprised with the news-many had expected Inland Southern California to receive a much smaller benefit from the new loan amounts. The new ceilings vary from county to county, and are based on the median house price in that county.
The adjustments are part of the economic stimulus package, making federally backed mortgages accessible to more buyers. These new limits won't cure all of the woes in the housing market, but many housing and mortgage experts say that this is a step in the right direction.
The median home price in Riverside county was higher than many expected. Dataquick posted it as $331,500. The FHA posted it as $400,000. The San Bernardino median home price is $298,000.
Here are a couple of key advantages concerning FHA Loans:
FHA secured mortgages require 3% down from the buyer. Other mortgages are requesting 10%, even up to 20%. This makes the affordability more accessible to first time home buyers.
The down payment can also be a gift from an employer, family member or a nonprofit organization. So kids, it is time to hit up your parents for some help.
The credit score of buyers can be lower than with other loans. The credit history still has to be good, but the FHA is not as tough about the credit score.
Summarizing, what this change in FHA lending policy means to Inland residents:
· Loans can be written for as much as $500,000. The previous cap was
$362,790.
· Higher loan limits are applicable to all FHA-insured mortgage loans starting
March 5, 2008 and they will last until Dec. 31, 2008.
· Qualifications are less rigid than those of other loans.
• 3% down payment.
Sincerely Kevin Williamson local REALTOR www.williamsonteam.net
;)
Links;)
Archives
Kevin - Thank you for the info. I don't do much business out there, obviously from Pasadena. However, it's always good to know what is happening affecting the Southern CA region.