How will the FHA lower loan limits affect your business?

By
Home Inspector with 203kOnLine.com, covering the USA S0289

The Bad News - Well most of you may have already heard that the FHA maximum loan amounts are going in the toilet. Down in many areas by more than $100,000. The high limit of $729,750 is about to become more in line with FannieMae at $625,500. 

This will take a whole bunch of clients out of the market in the higher cost area. Not to worry however.

If you have a purchase of $888,000 and the needed construction comes to $150,000 for a total acquisition cost of $1,038,000. Your options are to pay all cash... most can't but even if they can it may be to their advantage to finance the $625,500 and keep some of that cash fluid. Anyone with money knows the value of having that cash where they can make it work for them.

The Good News - There is still allot of business out there. Remember you can always piggy back an EEM Mortgage on top of a 203k loan and pick up some help on qualifying your buyer or exceed the "maximum loan amount" by 5% or, as most lenders apply it, up to $8,000. If you are having trouble qualifying a buyer this little known and little used feature.

Don't forget also that you can buy a pretty decent home for $648,000 and still use the loan to it's max. If you have investors wanting to leverage some of their aquisistions we have a loan program for them as well. It just isn't FHA but works just like it and has no PMI.

Posted by

Mike Young, 203k Team Leader    Mike ready for your 203k order

To learn more about the FHA 203k loan program go to www.203kOnLine.comWhat is your fee? 

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