The day has come where 1st home buyers are able to step forward with both confidence and success as they move towards attaining their first FHA Orange County home. This long awaited agreement has placed the ability for FHA loans to move into the light and at the top of the list. With higher mortgage limits for the Federal Housing Administration, commonly referred to as FHA loans, and absolute no change to the popular Fannie Mae and Freddie Mac loan ceilings, both buyers and loan refinancing officers will be looking to FHA loans as they are showing to offer an even stronger option for 1st home buyers. With the maximum loan limits raised in over 660 markets across the country, FHA loan programs will be a power source in one’s option for financing.
David H. Stevens, former FHA Commissioner and current President and Chief Executive of the Mortgage Bankers Association states, “there’s no doubt this will drive more business to FHA.”
Bob Walters, Chief Economist of National Lender Quicken Loans, mentioned his thoughts on how be believes the increased loan limits will benefit many consumers and, “especially those looking to borrow larger amounts [who] are in a credit situation where Fannie Mae and Fredding Mac loans are not available or optimal.”
Annie Austin, a Loan Officer with Cobalt Mortgage in Bellevue, WA, illustrates her support and praise by mentioning, “FHA is going to become the darling of the industry again.”
Reports out of Washington and by the LA Times further describe how the new limits will increase the FHA loan program attractiveness. Currently, by upping the ceiling in loan limits for FHA loans while simultaneously not increasing those for Fannie Mae and Freddie Mac, 1st home buyers will be more inclined to turn to FHA loan programs as their primary option. This is due to borrowers needing loan amounts at an average of $729,750 with down payments as low as 3.5% in order to quality within the high cost of living amongst California areas; in comparison to Fannie Mae and Freddie Mac’s ceiling amount of $625,500.
With the loan ceilings being the heart of congress’s compromise, the rise of FHA loan’s maximum amount ultimately reaches 125% of the country’s local median housing prices while Fannie Mae and Freddie Mac sit limited at covering 115%; turning FHA loan programs into a solution for first time home buyers ranging from minimal to moderate and even upper income families, with more financial opportunities across the board.
For borrowers, this agreement will be available through the end of 2013, offering many potential possibilities for 1st home buyers to purchase through receiving an FHA loan in Orange County, Los Angeles, Ventura, along with multiple areas across the country. Key factors to take away today is to review the new loan limits with your FHA loan officer and estimate out all the options a FHA loan can give to you and your family.