Congress and President Obama approved a measure today to raise the high cost loan limit for FHA loans from $625,5000 to its previous ceiling of $729,750. This means that homeowners in high cost areas can once again be eligible for larger size loans and enabling them to purchase homes while not having to bring in as much of a down payment. .
Higher Loan Limits History
As part of the economic stimulus package in 2008, temporary higher loan limits were enacted to help homeowners in high-cost areas that were unable to get loans FHA loans and conforming loans they needed and were unable to get regardless of their payment history, credit and income. Homeowners in areas such San Francisco, New York and Los Angeles routinely faced higher priced homes, which meant they were required to bring in substantially larger down payments when purchasing their home. These higher loan limits expired on October 1, 2011.
Do You Qualify for a Higher Limit Loan?
Since rates are near all time record lows, it’s important that you take advantage of the new increased loan limits if you are in a high cost area. Not sure if you are in a high cost area or if you qualify? We can help free of charge and help you understand what options might be best for your current situation.