This upcoming September 30th, the cost of obtaining a mortgage may increase because the loan limits relating to FHA mortgages are set to decrease on a state by state average of $68,000. According to information published by HUD, the change would negatively impact 669 counties across 42 states and territories. Accordingly, it will become more difficult for an individual or family to purchase a home.
Why would congress allow this to happen? With the stringent new requirements that banks are imposing on a mortgage loan applicant, it can justifiably be argued that the FHA should increase the loan limit as the risk of default, because of stringent underwriting criteria, makes it more unlikely that a homeowner will default on their financial obligation.
The decreasing of the FHA Loan Limit will slow the United States economic recovery. I urge you to click on the Call for Action image above and remind your government official(s) about the potential negative impact that lowering the FHA Loan Limit may cause.
If you are unable to view the above image, click here to be taken to the Call for Action web page.
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