Conventional, 30-yr Fixed Rate: 4.375%/APR 4.58%
FHA or Federal VA, 30-yr Fixed Rate: 4.375%/APR 5.406%
USDA, 30-yr Fixed Rate: 4.375%/APR 5.563%
Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.
Please contact your Loan Officer at Equity Loans or visit us at www.equityloansoregon.com for further information.
Friday, August 12, 2011
FHA Lower Mortgage Loans Effective October 1, 2011
FHA sets the maximum loan amount allowed to be able to obtain FHA financing. These loan limits vary by counties. For example, the current maximum loan limit in Polk and Marion Counties is $295,000.
Effective 10-01-11, the maximum loan limits will change and the expectation is that they will decrease. How does this effect you as a home buyer?
FHA loans require a small down payment of 3.5% of the sales price. Many home buyers prefer this loan program since there is less money out of their pocket than if they financed with a Conventional loan, which has a minimum down payment of 5% of the sales price.
Currently, if you are buying a home of $305,700 or less, you will be able to obtain the maximum loan amount of $295,000 (in Polk and Marion Counties) with your 3.5% down payment.
FOR EXAMPLE PURPOSES ONLY, if FHA lowers their maximum loan limit to $275,000 in Polk and Marion Counties, your maximum sales price (in order to keep your down payment at 3.5% of the sales price) is now $285,000.
This will eliminate the FHA loan program for buyers who want to put a minimum of 3.5% down and are buying a home for more than $285,000.
If you are thinking about buying in the sales price range of $300,000 +/- and you want a maximum FHA loan, you will want to get a home purchase under contract and start your loan process as soon as possible.
Effective 10-01-11, the maximum loan limits will change and the expectation is that they will decrease. How does this effect you as a home buyer?
FHA loans require a small down payment of 3.5% of the sales price. Many home buyers prefer this loan program since there is less money out of their pocket than if they financed with a Conventional loan, which has a minimum down payment of 5% of the sales price.
Currently, if you are buying a home of $305,700 or less, you will be able to obtain the maximum loan amount of $295,000 (in Polk and Marion Counties) with your 3.5% down payment.
FOR EXAMPLE PURPOSES ONLY, if FHA lowers their maximum loan limit to $275,000 in Polk and Marion Counties, your maximum sales price (in order to keep your down payment at 3.5% of the sales price) is now $285,000.
This will eliminate the FHA loan program for buyers who want to put a minimum of 3.5% down and are buying a home for more than $285,000.
If you are thinking about buying in the sales price range of $300,000 +/- and you want a maximum FHA loan, you will want to get a home purchase under contract and start your loan process as soon as possible.
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