Health & Fitness
FHA loan limit are going... DOWN!
HUD just released info that loan limits are going down on Jan 1st 2014.
Yeah… *sigh*. Another great move to help the housing market right? (please read that with my sarcastic tone)
Announced late last week on Dec 6th in ML 13-43 HUD has elected to change the limit for FHA loans from $365,000 for single family homes in the Twin Cities market down to $318,550. The limits go into effect for FHA casefiles reserved on Jan 1st 2014.
WHAT DOES THAT MEAN?
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- If you’ve been looking at qualifying for a purchase and expecting to use FHA financing… talk to your “mortgage guy” to make sure this doesn’t affect you.
- If it does… you’d need to get a property selected ASAP and your “mortgage guy” get the property address registered with HUD before the first of the year.
- Conventional loans with MI (mortgage insurance) will be more relevant as the loan limits are currently staying at $417,000
- Make sure your “mortgage guy” understands all FOUR TYPES of Mortgage Insurance along with the pros/cons of each. (you, the borrower... has an option of choosing one of 4 types of MI. If you don't get an option... you're most likely getting "sold" the most expensive option)
Good luck in your home search… more info to come.
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