FHA changes their mortgage limits yearly. Home buyers should keep in mind them and how they could change. Here is an overview of the Las Vegas FHA mortgage limits for this year.
An Explanation of FHA Mortgage Limits
Mortgage limits are the highest permitted mortgage values for an FHA mortgage. The mortgage value is less than the sales price. For example, if you find a house for $ 400,000.00 and your down payment is 3.5 percent , then the mortgage value comes out to $ 386,000.00 .
How FHA Mortgage Limits are Determined
FHA mortgage limits range by county and city. Median property values are compared against the national conforming mortgage limits. Conforming mortgages must comply with the Freddie Mac and Fannie Mae guidelines and may be sold in the secondary mortgage market. FHA calculates 65% of the conforming mortgage limit to set their floor for low cost markets. Low cost markets are communities where 115% of the median real estate sales price is less than 65% of the conforming mortgage limit. For high end markets, the limit goes as high as 150% of limits for national conforming mortgages. High cost cities are those where 115 percent of the median home value is higher than 150% of national conforming mortgage limits.
Las Vegas FHA Mortgage Limits For This Year
The mortgage range is $271,050 and $625,500. So, in no community will it be less than $271,500 or exceed $625,500. This range matches 2014 amounts, but most communities are not at this min or max and will thus see a difference for 2015. Also, there are differences between single family versus multi-family properties. You may look up specific figures at https://entp.hud.gov/idapp/html/hicostlook.cfm.
Importance of Understanding Las Vegas FHA Mortgage Limits For This Year
It is very important to know your maximum sales price during your property search. Purchasing a house over the max may require you to put more money at closing or require you to use another type of mortgage. For instance, if the mortgage limit in your region is $ 500,000.00 and you have 3.5% down, then your maximum home price is $ 518,134.72 . Selecting a home for $ 528,497.41 results in a $ 10,362.69 shortage. You must come up with that difference. If you do not have it, this can be detrimental. Do not forget that the max purchase price may not be the same for every city that you are looking in. It is a good idea to know what they are while you are looking for a home.
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