Conventional and FHA Loan Limit Increases
The transition in the mortgage market has taken another interesting turn thanks to the passage of an economic stimulus package that includes increases to Federal Housing Authority (FHA) and conventional loan limits. This plan has been months in the making and was backed by the National Association of Realtors®.
Last fall, many potential homebuyers who would have qualified for subprime mortgages found themselves shut out of the real estate market due to a lack of available mortgage products. Increased FHA loan limits will help 138,000 Americans buy a home and will help another 200,000 refinance their current mortgages, potentially preventing hundreds of thousands of foreclosures.
What Will Loan Limits Be in Our Area?
FHA and Conventional Loan Limits will be calculated at 125% of a county's median sales price, making affordable mortgage products available to those in higher-priced areas as well as borrowers who were formerly targeted for subprime loans.
King and Pierce County -- $567,500
Kitsap County - 475,000
See the FHA Website for more loan limits: https://entp.hud.gov/idapp/html/hicost1.cfm
Who Will Benefit from Increased Loan Limits?
· Buyers who have been concerned about not qualifying for a home loan.
• Sellers who could see a dramatic increase in the number of qualified buyers who are interested in their homes.
Contact Candace for more information on why now is a great time to buy a home!