Changes: FHA Loan Sizes
The size of the biggest mortgage the Federal Housing Administration (FHA) can guarantee is going to drop by as much as 50 percent in some areas of the U.S. in 2014.
Homeowners living in the highest-cost areas of the country will find their FHA loans capped at $625,500, down from $729,750 in 2013.
To get a larger mortgage, you’ll have to turn to the jumbo mortgage market, where you’ll likely pay a higher interest rate because your jumbo loan lacks a government guarantee.
The National Association of Realtors? predicts the maximum FHA loan amount will fall 20 percent or more in 146 U.S. counties and 10 percent or more in 300 counties. In some counties, the maximum size FHA loan will fall by more than 50 percent.
FHA’s website lets you check the loan limits in your county. Be sure to select the 2014 limits if you visit the site.
NAR recently wrote to HUD Secretary Shaun Donovan pleading with him to reverse FHA’s decision.
“While the housing market has improved in many areas of the country, the recovery remains fragile and uneven, especially in many of the areas where HUD has most severely reduced FHA loan limits,” NAR’s letter said.
“Many borrowers in areas affected by the reductions rely on FHA-insured products and would not have qualified under the low loan-to-value and tight credit standards currently required by the private market,” the letter continued.
“These conditions leave the American dream of home ownership out of reach for many families. Without access to affordable low down payment financing, families are unable to purchase or refinance homes, and those who wish to sell find it more difficult, all of which will continue to prolong our housing crisis. As proposed, the turbulence these reductions will create runs the risk of reversing progress being made in the economic recovery.”
Unfortuately, these are some of the changes planned for 2014. Changes: FHA Loan Sizes…Consider now how this may affect your ability to buy or sell your home in 2014.
Changes: FHA Loan Sizes
About Deborah Laemmerhirt
Let me assist you in finding everything you need to know about buying or selling a home! As the preeminent real estate professional in my community, I am dedicated to providing the finest service available while breaking new ground.
Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game.
I go the extra mile to help you achieve your goals. That’s why I constantly research the home, market and estate values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative marketing techniques to attract potential buyers.
As an Internet-savvy real estate representative in Connecticut, I’ve had the opportunity to help many home buyers find their ideal homes and many sellers obtain top dollar for their homes. Buying or selling a home is one of the largest financial transactions that most people ever undertake, so I will help you through every step of the process. My goal is to make your home selling or buying experience as easy and enjoyable as possible.
My services include:
Explaining the home selling and buying process thoroughly
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I welcome the opportunity to address any questions you might have about buying, selling or current market conditions. Please call or e-mail me any time, and I will be happy to discuss your next steps in the buying or selling process.
I specialize in both Residential and Commercial Properties.
I also head a Real Estate Group to provide you with expert service and support.
Areas of Expertise
Making transitions in your life is challenging. You may be moving from out of town, a different state, internationally or just next door! Regardless of the distance I am prepared to respond to your unique needs.If you are a BUYER looking to downsize, up-size, want a new construction, desire a condominium, to invest, even if this is your first home, I will design a unique plan to fulfill your needs in a reasonable time frame, with the best negotiated price and the least amount of inconvenience.For my Home Sellers, I have an innovative marketing plan that will leave nothing to chance. Just call, and I would be happy to share the DIFFERENT and SUCCESSFUL TOOLS I utilize on each of my listings.
I have lived in Connecticut for over 35 years. I practice Real Estate in Fairfield County, New Haven County and Litchfield County. This includes, but is not limited to Bethel, Bridgewater, Brookfield, Danbury, Harwinton, Kent, Litchfield, New Fairfield, New Milford, Newtown, Oxford, Ridgefield, Redding, Roxbury, Sherman, Southbury, Warren, Washington, Westport and Wilton.
