Maximum FHA Loan amounts... going down!!

Yeah… *sigh*.   Another great move to help the housing market right?  (please read that with my sarcastic tone)

Announced late last week on Dec 6^th in ML 13-43 HUD has elected to change the limit for FHA loans from $365,000 for single family homes in the Twin Cities market down to $318,550.  It doesn't matter what FONT or what COLOR is used... it's still not pretty.  The limits go into effect for FHA casefiles reserved on Jan 1^st 2014.

 WHAT DOES THAT MEAN TO ME?

1. If you’ve been looking at qualifying for a purchase and expecting to use FHA financing… talk to your “mortgage guy” to make sure this doesn’t affect you.
2. If it does… you’d need to get a property selected and your “mortgage guy” get it registered with HUD before the first of the year.
3. Conventional loans with mortgage insurance will be more relevant as the loan limits are currently staying at $417,00
4. Make sure your “mortgage guy” understands all FOUR TYPES of Mortgage Insurance along with the pros/cons of each.  (yeah… the borrower has the option of choosing one of 4 types of MI)

 Happy home shopping!!!