February 26th, 2009
FHA Limits
$373,750
Hot off the presses! That’s the new FHA loan limit in Skagit County as of this morning.
What is an FHA loan? There are so many myths about FHA that keep a lot of potential homeowners from asking about it. Let’s clear up a few.
FHA does NOT have a household income cap. Anyone can apply - even if you make a million $$$ a year!
FHA loan limit is NOT based on the purchase price of the home.
FHA is NOT limited to first time buyers.
FHA is NOT just for distressed properties, properties in need of repair or even single-family residences.
FHA does NOT require an unusual amount of costly property improvements.
What is FHA? Here are some truths that everyone needs to know…
- FHA IS limited by the LOAN AMOUNT. - not the purchase price.
- FHA single family home loans require very little down. About 3.5% in most cases. Even if you have more to put down, FHA can have advantages for you over conventional financing.
- FHA rates are VERY competitive. They are also more forgiving on credit scores.
- A portion of the FHA mortgage insurance can be financed, unlike conventional mortgage insurance, resulting in a lower monthly payment.
- FHA loans are assumable! Pretty cool for the future value of your property.
- FHA can be used by ANYONE for a primary residence (even if you have owned a home before) or an owner-occupied multi-family residence up to four units.
- FHA can be used for condos.
- As if the FHA downpayment wasn’t small enough already - it can come from a GIFT!! Try doing that with most conventional loans!
- FHA will allow seller contributions to closing costs.
And here is the real kicker that very few people are aware of… FHA CAN be used for re-fi’s! How about that!
If you are a buyer and you think your loan amount will be under the number at the top of this post, or if you are refinancing and you think your loan amount will be under the number at the top of the post - please ask your lender about FHA!! Don’t assume that it won’t work for you!
