Sunday, March 9, 2008

NEW FHA LOAN LIMITS

First time buyers, first time sellers looking to move up in the home market, and also those current property owners struggling with adjustable mortgages should benefit the most by the latest government move which increases FHA loan limits. The new limits should have a positive affect on the housing industry everywhere. In the Bucks, Chester, Delaware and Montgomery county areas of Pennsylvania the limits have been adjusted up about 50% from approx. $285,000 to $420,000. THESE CHANGES ARE SET TO EXPIRE AT THE END OF THE YEAR. These government backed mortgages are generally easier to qualify for and require a very low down payment of 3% in most cases. Housing and Urban Development (HUD)which cooperates with the Federal Housing Administration (FHA) gets to have a major impact on the criteria to qualify for FHA loans. We at JB REALTY SERVICE LLC find these loans are a great tool for those who are just graduating college or trade school and may not have established a long work history, borrowers with low cash reserves that may be getting funds from relatives, and buyers in need of assistance from sellers with monies toward closing costs. Credit score levels are also more forgiving. Buyers must be aware not all lenders are approved to offer these FHA loans. Contact john@jbrealtyservice.com. We can advise you on all your real estate and mortgage needs, also read the blog at http://www.jbrealtyservice.com/.