FHA Tampa Mortgage | FHA Loan Limits Increased

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Mortgage and Lending with Your Tampa Bay Mortgage Source

Istock_000001376411xsmall FHA Loans in Tampa, Florida and throughout the US are going to become even more useful now as the President has finally signed the Economic Stimulus Bill which increases the FHA loan limits by county. (To determine your maximum loan limit, please use the following link to HUD.)

What does this mean to the consumer?  For consumers, many people could not take advantage of FHA loans in the past for purchases or refinances because of the low loan limit....now FHA loans can be used for higher loan amounts...in Hillsborough County, this means we can use FHA loans for loan amounts up to $292,500 for a single family home. 

What is the benefit of using an FHA loan?

  • Lower down payment - Typical FHA standards say that the borrower must have a 3% down payment.  However, with the help of down payment assistance programs, like AmeriDream, borrowers can have that down payment gifted and in turn have a zero down loan.
  • Reduced Credit Standards - FHA is more lenient on borrowers with limited or bruised credit history, with no true minimum credit requirement.
  • Higher LTV allowed on cash-out refinances - Standard conventional guidelines say that a borrower can "cash-out" up to 90% of the value of their home.  However, in our declining market environment, that number is reduced by 5%.  This is a problem for many homeowners trying to get our of their adjustable rate mortgages.   With an FHA loan, a borrower can cash-out up to 95% of their property value.

What does this mean for REALTORS?

  • FHA has made some significant changes in their underwriting criteria.  In the past, FHA inspections were required to make minor repairs for cosmetic defects, or normal wear & tear.  Now, FHA has revitalized to a underwriting process much similar to conventional loans, making it easier for consumers to use and REALTORS to promote FHA products.
  • Ability for Seller to offer concessions to sell their homes - FHA allows the seller to "gift" the 3% down payment through AmeriDream.  In addition, the seller can give up to 6% of the sales price to the buyer for closing costs, prepaid expenses and points.
  • If you have a listing that isn't selling because the home needs some improvements such as new flooring, windows or updated appliances - the new FHA mini rehab program allows buyers to finance as much as $35,000 into the mortgage for minor repairs that would be completed after the sale.

FHA Mortgage Loans are going to become a more vital way for consumers to get the best out of their mortgage options for purchases or refinances.  If you are a consumer who has recently been turned down for a conventional loan or were told that you have to bring more money then you have to closing, please feel free to contact me for a complimentary consultation to see if the new FHA program is right for you!

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Your Tampa Bay Mortgage Professional

Leah Ross, XCO, AmeriFirst Home Mortgage

Please feel free to contact me via email at LRoss@AmeriFirst.com or Phone 813-643-8430 or 269-488-9527

Comments (6)

Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage
How will this new change affect you?
Mar 07, 2008 01:50 AM
Chris Tesch
RE/MAX Bryan-College Station - College Station, TX
College Station, Texas Real Estate
Wow, FHA is really stepping up to the plate.  I've been impressed that they were making some progress last year, it seems as though they have made even more progress now!
Mar 08, 2008 07:19 AM
Jack Haydon
Charles Rutenberg Realty - Clearwater Beach, FL
Clearwater Beach Condos - Real Estate Homes for Sale
Leah - You know we are finding FHA to be a great loan for many homebuyers here - thanks for the official update!
Mar 09, 2008 04:02 AM
Katrina Madewell
Charles Rutenberg Rlty- More than 5,000 agents(813) 777-1196 - Tampa, FL
Tampa FL Homes for sale | Tampa Bay - (813) 777-1196

Yes this post is just in time for the rest of the people having difficulties perhaps getting our of an ARM.

It seems that FHA is the new subprime these days.

Mar 10, 2008 07:32 PM
Billy Ray
1st Continental Mortgage - San Jose, CA

Leah I aggree FHA is the Only way to GO!

http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml

 

Apr 11, 2008 10:37 PM
SHAUN WREN
LICENSE IS NOT PLACED - Lakeland, FL

Leah- My favorite loan. Great news.

May 17, 2008 01:59 PM