Health & Fitness
Congress Restores FHA Loan Limits To $729,750 In Orange County
More San Clemente residents can buy homes here after FHA increases funding to $729,750. Read the new rules.
Here is great news for San Clemente home buyers; many more people can now afford to buy a home here.
On Thursday, Nov. 17th, Congress restored the loan limits for the Federal Housing Administration for two years.
The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets (including Orange County) with the floor remaining at $271,050.
Find out what's happening in San Clementewith free, real-time updates from Patch.
The reinstated FHA loan limit change can help make mortgages more affordable and accessible for people in 669 counties in 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000.
Find out what's happening in San Clementewith free, real-time updates from Patch.
• FHA loans must be obtained through an FHA-approved lender.
• Down payment requirements are minimal. Buyers need only 3.5 percent of the house's price tag.
• The down payment can be a gift from a family member, employer, local charity, or local government program.
• You can get an FHA loan even if your credit history is less than stellar.
• You must have a two-year employment record. Your mortgage payment must be less than 31 percent of your income, and your total debt (mortgage, students’ loans, etc.) must be less than 43 percent of your income.
Read the rest of the CNN article here.
As you may recall, in late September the FHA, Fannie Mae; and Freddie Mac loan limits were reduced in 42 states pricing many potential home buyers out of the American Dream of home ownership and holding back the housing recovery, according to Realtor Action Center.
However, Congress chose to NOT apply the loan limits restoration to Fannie Mae and Freddie Mac. Fannie-and-Freddie-backed mortgages will remain at 115 percent of local area median home prices up to $625,500.
The bill also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011.
Read the rest of this article from Realtor Action Center here.
If you have recently suffered a foreclosure or short sale and feel that you cannot buy another home for a while, call me. I may have a solution. 949-463-4111 www.DebbieFerrari.com | Debbie@DebbieFerrari.com
