FHA Loan and FHA Refinance

fl_mortgagedepo · Joined: 12 Feb 2007 Posts: 4 7.97 Dollars($)

Hi,

The Federal Housing Administration has long been a channel where borrowers who fall within the guidelines can turn to get a loan. The FHA loan allows borrowers who qualify for the program to put less money down, have less money as reserves to qualify, and even provides a small credit towards closing costs. Strides are underway to increase the max loan amounts and loosen the requirement to fit borrowers who are in mortgage trouble into the FHA loan. Many troubled borrowers who are unable to refinance with the current lending restrictions and limited loan options will be able to turn to FHA for help.

Cheers,
Samantha

lisascherzer · Joined: 04 Jan 2008 Posts: 746 93.70 Dollars($)

Loan limits just increased temporarily. For those of you that have been over the FHA loan amount limit, look at the increase which is up to 729,750 in high cost areas.

jameshogg

yes Lisa, it's good that the FHA has increased it's loan limit. Formerly a percentage of borrowers were deprived of such loans due to the limit in their counties being lower than what they require. But now they can avail such loans provided their debt ratio and income satisfy the FHA requirements. After all, the FHA loans are the ones available at very low down payments and one of the best options for first time buyers. Moreover, it's more in demand due to being a government insured loan.

Thanks

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