Mortgage Updates

Buyers in all California markets will be pleased with the increased loan limits for standard FHA purchase transactions. 

The maximum loan amount (with the exception of Alaska and Hawaii) is $625,500. HOWEVER, this limit is only applicable in certain counties. For example, in California, there are only 10 counties that allow a “ceiling” limit of $625,500. Those Counties are: Alameda, Contra costa, Los Angeles, Marin, San Benito, San Francisco, Santa Clara and Santa Cruz.  The loan limits for Sacramento, Placer, El Dorado, Yolo are $474,950 and Nevada County max loan is $477,250.  These are just few examples of where the FHA loan limits are... compared to Fannie and Freddie who are falling back to the $417,000 loan limit for conforming loan amounts on single family purchases.

With a minimum investment of 3.5% FHA has the most attractive purchase financing package.  Especially since the down payment can be 100% gift with the seller can paying up to 6% of the sales price towards the buyer's closing costs.  Other benefits with FHA financing, slightly looser underwriting for buyer's with lower fico scores (600 minimum for most investors) and the opportunity for the help of a non occupying co borrower - typically parents.

FHA has truly stepped up in support of the home buyer... Especially the First Time Home Buyer.  Loan amounts have also increased for 2 to 4 unit properties.  If you have questions or comments please contact me - Ingrid