Having a hard look on the FHA role change
Even the cheap mortgage rates are not proving to be of much help for the people and the housing market. But with the new changes designed by the Congress, the real estate market may look less grim for the common man. But, in order to take the full advantage of these changes, you need to take a hard look at the changes that will be brought in for the Federal Housing Administration or FHA. It will also be important for you to get the right kind of real estate guidance based on the changes brought in by the Congress.
The changes that have occurred
Quite a few number of changes that been already brought in by the Congress. The Congress has raised the maximum loan limits with regards to the Federal Housing Administration or FHA but they have left the loan ceilings just as it were for both Fannie Mae and Freddie Mac.
This is supposed to result in FHA becoming the best financing option for the borrowers; especially for the one’s borrowing home loans up to the limit of $729,750, where the down payments can be as low as 3.5 percent. This is supposed to happen mostly in the areas that have high cost living limits like those of the metropolitan Washington, D.C, California, North Carolina, New Jersey, New York, Florida, Massachusetts and so on. The loans by Fannie Mae and Freddie Mac in these places remains capped at $625,500.
This new plan also raises the FHA ceiling for the buyers in hundreds of the moderately priced real estate markets. The maximum FHA loan amount are said to have jumped to $567,500 for the buyers in the Seattle area. In this area, the Fannie Mae-Freddie Mac ceiling still remains at $506,000. In the Hartford area, the loan limit for FHA has now become $440,000 which is said to have gone up from $320,850. On the other hand, the Fannie Mae and Freddie Mac remain capped at around $417,000.
The congress is said to have increased the FHA loan amount (maximum) in almost all areas of over the country to around 125 percent of local median home-sale price, but have left Fannie Mae’s and Freddie Mac’s loan limit at 115 percent of the median price.
Now, you might be wondering what actually made Congress go for such a change with regards to the real estate market (FHA home loans). Based on a 60-38 vote in the month of October, the Senate had passed an amendment so as to raise all of the three agencies’ limits to $729,750 in all of the high-cost areas in the nation and to 125 percent of median sale price in other places. This goal was mainly planned so as to inject that badly needed vitality into the lagging real estate sales. But, the Republicans desisted in letting Congress taking any of the steps that may help lengthen the existence of Fannie Mae and Freddie Mac.
Processing your request, Please wait....
