One little recurring theme in my articles over the last 14 months has been that FHA loans have become increasingly more useful in this market. In the last round of stimulus rules, FHA went back to 2008 loan limits.
That means that in Sonoma County, the conventional loan limit is $520,950 but you can borrow up to $662,500 with FHA. In Marin County you can go to $729,750 on an FHA and you are limited to $625,500 on a conventional loan. FHA did not work well in the north bay for decades and now it is almost the loan of choice and I happen to be an FHA expert - woo hoo!
In many parts of the San Francisco Bay Area, the FHA loan limits are $729,750 where conventional limits are limited to $625,500. Those are the highest limits out there folks and we see this all over California. To look up the actual limits in your area, you can do so directly at:
https://entp.hud.gov/idapp/html/hicostlook.cfm
Realtors and home buyers have not had much experience with FHA in the San Francisco Bay area. I started my career in Sacramento and 65% of my business used to be FHA. From 1995 through 2007 after moving to Sonoma County I did a whopping total of 2 FHA loans. In 2008, I did a ton of them and I realized that I am an expert on these loans and I rather enjoy FHA.
One of the things I love best is destroying myths about FHA. Here are a few:
1. You have to get a pest clearance - WRONG!
2. They are very strict - WRONG!
3. There are certain fees the seller has to pay - WRONG!
4. You have to be a first time home buyer - WRONG!
Stop by my web site and look at the video titled FHA for Realtors. This is good for agents and home buyers and it can be found here:
https://www.thinkbigworksmall.com/public/showArchiveVideo/161/2411
FHA loans are great loans and one more little tidbit that conventional lending should follow. If you keep your payments up, you can do streamline refinance without an appraisal or verification of income or employment. That means that if you pay your mortgage on time and you can get a better rate, you are approved. This would really help a lot of upside down homeowners today if this was applied to FNMA and FHLMC.
Remember to Ask the Loan Man!
Hans Bruhner, CMPS is licensed in CA & HI. If you have a question, please contact Hans at (707) 887-1275 or hans@hansblog.com or stop by www.AskTheLoanMan.com . First Priority Financial, Inc. is licensed by the CA DRE #00654852.
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