FHA Loan Limit Raised to $400,000 in Las Vegas

Las Vegas Real Estate Career Tip:  Discover the benefits of the FHA loan. 

HUD’s Federal Housing Administration (FHA) is temporarily increasing its loan limits (until December 31, 2008) in Clark County, NV to $400,000 (from $304,000) as part of an economic stimulus plan that will enable more families to qualify for a safe, affordable mortgage.

FHA loan guidelines are more relaxed than conventional loan guidelines; this includes less strict regulations about past bankruptcies and/or foreclosures, job requirements, use of alternative credit, and debt-to-income ratios.

FHA Loans have several advantages over conventional loans, including lower down payments and more relaxed credit-qualifying guidelines. The federal government created FHA loan programs to encourage homeownership throughout the country. The FHA does not supply the loan; it simply insures the loan to limit the risk to the lender.

Benefits of an FHA loan include:

• A 3% down payment, as opposed to a 5% down payment on traditional loans
• Low monthly mortgage insurance
• Low closing costs, which are regulated by HUD
• No credit score requirements
• Qualify for a loan two years after a bankruptcy
• Qualify for a loan three years after a foreclosure
• A non-occupant co-borrower can help buyer qualify for purchase
• Buyer can receive 100% gifted funds for down payment and closing costs from family member
• Seller can contribute up to 6% toward closing costs

For more information, visit these websites:

• HUD.gov
• FHA.com