Reports have been circulating around about the FHA increasing loan limits for 2017. We contacted Mike Rolston, who is Mortgage Loan Originator from US Lending Network to give us an update.
The limits for FHA financing went up in all counties across the nation. Riverside and San Bernardino counties loan limits went from $356,500 to $379,500. That also means that for someone who wants to purchase a home and put the minimum 3.5% down they will be able to go up to $393,000 on a sales price compared to $369,000 which was the maximum for 2016. FHA also increased limits on high cost areas which are Los Angeles and Orange county. The current loan limit for those counties is $625,500 but they will also go up to $636,150 in 2017. That will allow a borrower to purchase a home in Los Angeles and Orange county at $659,000 with 3.5% down.Conventional financing loan limits also increased. The 2016 limit in Riverside and San Bernardino Counties is currently $417,000. They have now increased it to $424,100. Areas that are considered high cost which are Los Angeles and Orange county also increase from $625,000 to $636,150. – Mike Rolston
Good or Bad News ?
This is definitely good news for first time buyers and lower income borrowers.If you are wondering why this is happening now, it is because laws were passed when the housing bubble burst that forbade these limits to increase until the market was back at “pre-crisis levels”.
“These loan limits are effective for case numbers assigned on or after Jan. 1, 2017, and will remain in effect through the end of the year.” – source
Home prices have recovered and this is mainly the FHA recognizing that loan limits need to stay more current with housing market. Limits like this may seem small, but it will open the door for “tens of thousands of California home buyers”. If you have anymore questions about this topic, be sure to get in contact with Mike Rolston.
Cell: 951-318-8221 | Fax: 951-8480947
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