FHA home repairs loan

What the New FHA Mortgage Limits Mean for You


The Federal Housing Administration recently announced a reduction in high-cost area loan limits. This reduction comes in accordance with the government’s ongoing effort to retreat from the housing market. Rewind the clock back to 2008, when financial markets were significantly depressed, the economy was on the verge of recession — enter the FHA as the new outlet to support a frail housing sector.

Since then, unemployment has dropped, job growth, while still bleak, is improving, and real estate is in demand. The FHA has accomplished its goal of helping to boost the housing market. Now the government wants to minimize its exposure to bigger loans.

The FHA loan limit reduction will affect home buyers in higher-end properties. For example, if you take Sonoma County, Calif., the maximum new FHA loan limit in January will be reduced to 0, 950 from 2, 500. Homebuyers who once could buy with less capital will now have to invest more cash into the deal or buy less house.

What the New FHA Loan Limits Mean for YouIf you’re looking to buy a house but haven’t yet, here’s what to expect in 2014.

1. Your Mortgage Limits Will Be Reduced

Most counties will see the maximum loan limits decrease, on average, by $67, 250 beginning January 2014.

2. You’ll See Jumbo Mortgages Again

A jumbo mortgage loan typically has tighter qualifying restrictions in terms of credit history and debt ratio requirements than its FHA loan counterpart. For example, a buyer with tarnished credit can use an FHA loan to purchase a home three years out of the short sale or foreclosure or two years after a Chapter 7 bankruptcy. But with many jumbos, the standard seven years will apply in most cases. One exception to this is if you have 30% down, a lender will consider granting a jumbo loan to a borrower two years after they’ve had a short sale.

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A.A. for Homebuyers. Zero Down FHA loans tied to

2004-01-26 14:30:51 by Your_pensions-funded-by-

Don't read this if you're invested in the mortgage market: you'll throw up:
Last week, the Bush administration proposed that the FHA allow zero-money-down financing for first-time homebuyers. Zero money down for a house. The new provision would give additional teeth to an already absurd mandate of the FHA: approving applicants who have demonstrated they pose too high a credit risk to get a loan through the conventional mortgage market.
- Lenders, of course, love the idea. "Any down payment," Angelo Mozilo, CEO of Countrywide Financial Corp. told the LA Times, "even 3% [the current requirement of the FHA] is a major, unnecessary obstacle for lower-income borrowers

Questions about FHA loans

2002-07-05 13:04:12 by markster

I've read about these loans at If you have a FHA loan or even considered one please reply.
Is it really true you only have to put down 3%?
Is the following true? Your total move in cost is the FHA premium (2.25% of the mortgage), closing cost (3% of the home value) and down payment (3% of home value).
Also, I've heard that instead of PMI you pay a monthly FHA premium, if so, how much is it?
I've heard that FHA rates are considerbly lower than conventional rates. How much lower are they?
Thanks in advance for your time.

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Radian Group Inc (RDN): Radian Group's CEO Presents at Goldman Sachs ..  — Seeking Alpha
One of the topics in our [indiscernible] has significant earnings tailwinds [indiscernible] and is well-position for growth, as private mortgage insurance redeem market share from the FHA. With that, I'll turn it over ..

2014 Debt-to-Income Ratio Update: FHA, Conventional Mortgages, and QM  — Home Buying Institute
The front-end or “housing” ratio only looks at housing-related debts, such as monthly mortgage payments and property taxes. The back-end or total DTI ratio takes .. the back-end debt ratio, in particular.

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