New FHA Loan Limits In 2017 Share

December 5, 2016

Great news for San Diego home buyers The Federal Housing Administration (FHA) has released a new mortgage loan limit update. The increases go into effect for case numbers assigned on or after January 1, 2017.

Effective immediately, FHA-insured mortgages are now available for loan sizes up to $636,150 for one-unit homes;

FHA loan limits are higher for 2-unit, 3-unit and 4-unit properties;

  • One-unit:   $636,150
  • Two-unit:   $814,500
  • Three-unit: $984,525
  • Four-unit:   $1,223,475

It can be confusing, but the FHA is not actually a mortgage lender. Rather, it's a mortgage loan insurer. The FHA provides insurance, which protects against loss the banks, which make "FHA loans".

The FHA keeps a book of rules and says, "so long as you make loans that follow these requirements, we will insure those loans against loss."

FHA-backed loans are often easier for which to qualify than their conforming mortgage counterparts, and come with a number of home buyer-friendly characteristics.

As a few examples of the FHA's buyer-friendly rules:

  • FHA mortgages require a downpayment of just 3.5 percent
  • FHA loan downpayment monies can be gifted from a family member
  • The minimum credit score requirement for an FHA loan is 500

The FHA is also extremely friendly toward home buyers who have had a recent economic event.

If you are thinking o buying or selling your home in the upcoming year, give me a call 619.980.2738. Or click here I'm here to help!

 

 

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