FHA mortgages have been more accessible to Americans than ever before as Congress has been approving higher loan amounts on FHA limits. With the government endorsing higher limits on lending we anticipate that 2013 FHA loan limits will remain high. Today’s loan amount restrictions are always updated on the Department of Housing and Urban Development website for each county in each state, Guam, and the U.S. Virgin Islands. The current limits are $271,050 in low cost regions of the country and $625,500 in areas deemed as higher cost zones. The 2013 loan limits should remain at the current levels with higher FHA loan amounts than in previous years.
- Higher 2013 Loan Limits on FHA Mortgages
- FHA ensures lower down-payment requirements than loans that conform to Fannie Mae or Freddie Mac
- HUD approves FHA financing with fico scores as low as 500
- Interest Rates on 30-year FHA mortgages have fallen between 3.25 and 3.5% on average nationally.
In a recent HUD letter, they said, “For several years, FHA levels were below the cost of the average home in communities across the United States. As a result, families who needed insurance to become eligible to finance a house were effectively blocked from the process. In many instances, borrowers turned to riskier sub-prime loans.
How High Will Congress Raise the FHA Loan Amounts for 2013?
Some of the benefits of FHA mortgages include low down-payment requirements, no penalties for early pay-offs or refinances and limitations on closing costs. Although FHA recently established a minimum credit score of 500, they still approve home loans bad credit when borrower’s can come up with more of a down-payment than 3.5%.
A few years back, HUD approved the upfront mortgage insurance premiums for home buying and streamline refinancing to 2.25% and the premium rate on HECMs remains at 2%. Home equity conversions are a type of “reverse mortgage” that is government insured for eligible borrower’s that are at least 65 years of age.
Speak with your loan representative to determine 2013 FHA limits for loans in your region.