While the FHA does set a limit for how much it will lend, fortunately many beautiful homes in Orange County remain within reach of those who qualify for a loan.
The maximum house price allowed by FHA is currently $729,750, but that limit only applies to the loan itself. If you have your sights set on a higher-priced home, that’s perfectly OK – you’ll just need to come up with a higher down payment to make up a percentage of the difference.
Yes, you can buy a home in Orange County with a FHA Loan! It doesn’t matter if you’re a first-time home buyer, moving up, or even downsizing due to an “empty nest.” The FHA has a variety of options, even for those without a large down payment or a lot of equity in an existing home. Rather than a whopping 20 percent down like many conventional loans, FHA loans allow down payments of as little as 3.5 percent.
In most areas, the FHA loan limit is $417,000, but the temporary limit of $729,750 was set in 2008 as an economic stimulus incentive for single-family houses in “high-cost areas” such as Orange County and also affects prospective FHA Los Angeles and FHA Ventura buyers. That limit is set to expire on Sept. 30, 2011, so act soon! If the incentive is not extended by Congress, the limit will reset to the HERA (Housing and Economic Reform Act) limit of $625,500, as Orange County is one of the 669 counties affected.
In a May 2011 Market Analysis, the U.S. Department of Housing and Urban Development, points out: “For the U.S. as a whole, approximately 3% of loans by count (33,301) and 6% by dollar volume ($14.2 billion) endorsed in calendar year 2010 would not have been endorsed had HERA limits been in effect.”
Starting the Loan Process
With homes more affordable than they’ve been in 30 years, and interest rates low, there’s no reason to delay in starting the FHA loan approval process. Contact your local Orange County FHA expert now to get the ball rolling and get into your new home! Choosing a lender who is well-versed in the workings of the Federal Housing Administration program will ensure that you will close on your dream home without stress, headaches, or unexpected expenses. FHA lenders are experts in the process, know the loan limits, and are eager to help Orange County home buyers get through the process of buying a house as well as FHA refinancing.