HUD Increases FHA And Conforming Loan Limits
- By Mar McLaws
- Published April 8, 2008
- Mortgage
- Unrated
The U.S. Department of Housing and Urban Development better known as HUD has released new FHA and Conforming Loan Limits. It is based off of median home prices reflected by the Economic Stimulus Act. The act was signed by President Bush in February of 2008. The loan limits are one-hundred and twenty-five percent of the median home prices published by Hud. The minimum is $271,050 and the maximum is $417,000. There is a high expectation that the housing market will be significantly impacted because of this. The government is pouring money into the economy. Because of all of this interest rates are lower. The higher cap on FHA loans will help lower closing costs typically from a 5%-%10 down payment down to 3%. On a $400,000 house that is a savings $3,000-$28,000. This impact has significantly impacted the market already and will continue to impact it for some time. Fannie Mae and Freddie Mac have been increased with the intent to help people who want to own a home who may have not been able to in recent years.
It is expected that over 100,000 more Americans will be able to purchase homes and a couple hundred thousand more will be able to refinance and keep there homes that otherwise may have slipped into foreclosure. This seems to be the stimulation the housing market has needed to get out of this slump. Also it is expected that the increase in
conforming loan limits will help prevent over 200,000 foreclosures and also that 300,000 more home sales may result. This will help lower the high inventory of homes and it will also help strengthen home prices. Overall the stimulation of the market will be felt nation wide. A realtor out of Arizona stated that he is seeing more homes selling per month than in previous months. Many realtors are expecting that this may be the bottom of the couple year slump. It seems that banks are tightening up on what offers they will accept on foreclosed homes. In many cases banks are not selling as far below the asking price as they were before. Still, it is important to keep in mind that there is still a huge inventory of homes still on the market for sale.
For those sitting on the fence waiting to buy a house until the bottom hits, this may be the time. Any realtor will tell you it is impossible to be able to tell when the bottom is coming. It is hard enough to tell when the bottom is here. It is up to each person to decide for themselves. This is a time when house prices are low and financing is readily available. Interest rates are at a low and there are many different homes to choose from. Never have there been so many options on the home that will fit you or your family. Wether you are looking to buy a home for the first time or wether you are buying a home with a conventional loan, the recent activity by HUD will effect you and more than likely help you.
It is expected that over 100,000 more Americans will be able to purchase homes and a couple hundred thousand more will be able to refinance and keep there homes that otherwise may have slipped into foreclosure. This seems to be the stimulation the housing market has needed to get out of this slump. Also it is expected that the increase in
For those sitting on the fence waiting to buy a house until the bottom hits, this may be the time. Any realtor will tell you it is impossible to be able to tell when the bottom is coming. It is hard enough to tell when the bottom is here. It is up to each person to decide for themselves. This is a time when house prices are low and financing is readily available. Interest rates are at a low and there are many different homes to choose from. Never have there been so many options on the home that will fit you or your family. Wether you are looking to buy a home for the first time or wether you are buying a home with a conventional loan, the recent activity by HUD will effect you and more than likely help you.