FHA Loan Programs and Limits

UPDATE: 01/19/2010 – Things just got a little tighter in the FHA arena. Check out this post from mortgage professional Dan Green for the details on new downpayment and MIP requirements:

Even in today’s tighter credit markets, there are programs available that assist home-buyers in obtaining mortgages with low down payment requirements. FHA loans are issued by lenders, but insured by the FHA. There are unique advantages and benefits that are only available with FHA (the following is quoted):

• Easier to Qualify – Because FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements so its easier for you to qualify.
• Less than Perfect Credit - Even if you have had credit problems, such as bankruptcy, its easier for you to qualify for an FHA loan than a conventional loan.
• Low Downpayment - We have a low 3% downpayment, and that money can come from a family member, employer or charitable organization. Other loans don’t allow this.
• Costs Less – Many times, FHA loans have competitive interest rates because the loans are insured by the Federal Government. Always compare an FHA loan with other loan types.
• Help You Keep Your Home – The FHA has been around since 1934 and will continue to be here to protect you when the others walk away. Should you encounter hard-times after buying your home, FHA has many options to help keep you in your home and avoid foreclosure.

There are limits to the amount that can be borrowed under this program and they vary by county. There is a chart to the right that allows you to see for your county, what the current limits are. If you have further questions drop me an email or use one of the buttons to the right to get in touch. Thoughts and comments are always appreciated.

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