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NEW FHA LOAN LIMITS FOR 2018 | WHAT DOES IT MEAN?

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On the hunt homebuyers received a boost from the Federal Housing Administration (FHA) for 2018! Already in effect as of January 1st of this year, FHA announced a new schedule of loan limits with increases.

For the past 2 years, the increase in loan limits per county has steadily grown: from 188 counties in 2016, to 2,948 counties in 2017 and now 3,011 counties in 2018 according to an article in The Housing Wire.

FHA’s minimum national loan limit, or what is referred to as floor, is equal to 65% of the national conforming loan limit of $453,100. This applies to areas where 115% of the median home price is less than the floor limit. Anything over is considered a high-cost area where the FHA will set a maximum loan limit, or ceiling, at 150% of the national conforming limit.

Florida Realtors also reported the national mortgage limit for FHA-insured Home Equity Conversion Mortgages (HECMs), or reverse mortgages, has also increased and will apply to all mortgages regardless of location.

So what does all of this mean for you? If you did not already know, FHA loans are easier to qualify for with several “buyer-friendly rules” including a down payment of just 3.5% and a minimum FICO score of 500. Interest rates in Miami have been on the rise causing affordability to decline for most. Now that FHA limits have risen, it may be the perfect opportunity to fulfill those homeownership dreams.

Are you ready to take advantage? We are here to help, call us today at (305) 809-7650 or fill out our contact form to schedule a consultation.