Posted by Frank & Brian of the NREP
FHA loan limits vary in size across the country and they top out at $729,750 in the highest of high cost areas. Come January they are reducing this max loan amount to $625,500 and they are reducing the max limits in most area’s across the board.
In your real estate news and mortgage news today we come across FHA and the fact that they are lowering loan limits across the board. If this occurs in lower loan amount areas we can understand that there could be some frustration there, but in the high cost areas it seems to us to be a good idea.
Think about it. You’re going to get a loan amount of almost a million dollars and you’re only required to put 3.5% down? Just seems like there’s something wrong with that. We get that in high cost areas you need higher loan amounts, but if you live in an area that requires an
FHA loan of almost a million dollars, you’re probably making a decent living and it would stand to reason that you could possibly save a couple more bucks for a down payment.
Re-posted by David Hughson