FHA to lower maximum mortgage amount next year…

FHA to lower maximum mortgage amount next year

 

Published: Monday, Dec. 9, 2013

The federal government announced Friday it's lowering home loan limits in many areas across the country next year.

The change takes effect Jan. 1, the U.S. Department of Housing and Urban Developmentsaid.

"As the housing market continues its recovery, it is important for FHA to evaluate the role we need to play," Federal Housing Administration Commissioner Carol Galante said in a statement. "Implementing lower loan limits is an important and appropriate step as private capital returns to portions of the market and enables FHA to concentrate on those borrowers that are still underserved."

FHA loans, with their low down payments, are popular with first-time homebuyers.

"Anything you do to make it harder for people to get loans is going to have an impact on the marketplace," said Jim Heidisch, a broker in Pompano Beach, Fla.

Roughly 650 counties nationwide will see lower limits, according to HUD, which oversees FHA. The higher limits were part of the 2008 economic stimulus package designed to help the country during the Great Recession.

HUD said the lower limits were meant to take effect in 2009, but Congress delayed implementation because of the ongoing lending crisis.

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s