HUD and FHA announced their new max loan limits this morning (March 6th 2008). In almost all of the Washington Metro area our new loan limit is $729,750 (up from $362,250). This is our max FHA loan limit and is good through the end of 2008 when Congress will determine whether to extend or not.
This is REALLY, REALLY BIG NEWS!
No worries of Declining Markets as we have on conventional loans
FHA MIP of 1.5% charged on all loans - Non Refundable, but "Financeable" into loan amount
1/2 percent premium for monthly mortgage insurance
2.25% down payment - borrower needs to "pay 3%" minimum into deal
6% maximum contributions from seller
Regarding the Fannie / Freddie Conforming loan limit increase: Raising the conforming loan limit will help higher down payment borrowers. The great RESULT from the FHA increase is that it helps the lower down payment borrowers - which will help the higher down borrowers sell their homes.
We are still anxiously awaiting word from Fannie and Freddie on our new Conventional Conforming loan limits, but we should hear soon. The bet here is those limits will mirror the new FHA loan amounts...
This should be great news for the stagnant Real Estate Markets!!!
Thinking of buying or selling? I am just a phone call away at 703-625-4949 or email me at Info@eNOVAHomes.com
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