FHA Chops Loan Limits in 2014

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-logo-1

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

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  • Carmen Harris

    Thanks Dave – I’m so grateful that we have you on the team. The constant changes that occur can be a lot to keep up with and it’s so appreciated to have you keeping us all up to speed!

  • jessesdisqus

    Dude … I know Ive heard you say that San Diego has its own limits, but, if Im doing the math isnt that like 80k for us? thats a HUGE chunk of cash that buyers cant leverage any longer. what do you think the outcome of that will be on prices?

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