Typically, December is the month where consumers can get a great deal on the perfect holiday gift. For home shoppers, Christmas might have come a little early this year. The FHA announced new loan limits across the U.S.
Riverside & San Bernardino County Loan Limits
In fact, the Federal Housing Administration announced nearly all of California will see an increase in loan limits 2018. Here is the breakdown of what this means to you as a local buyer in Southern California. We reached out to Ken Vanevenhoven, from EPIC mortgage to give us an update on San Bernardino and Riverside Counties.
“With November ending, and December seemingly already through, it’s the time of year to be putting up lights, hanging stockings, and decorating the Christmas tree. It’s also the time of year that next years county loan limits are released. Last week, Conforming loan limits for 2018 were released, raising the loan limits for San Bernardino and Riverside counties to $453,100 from $424,100. This raise also affected VA loan guarantee limits, allowing Veterans to borrow up to $453,100 without a down payment”
The FHA has just now released FHA Loan Limits for 2018, but before we get to the new limits, I want to briefly discuss FHA loans, and clear up some common misconceptions and confusions people have with FHA loans. To start, the FHA is the Federal Housing Administration (not the first-time home-buyer’s assistance), and falls under the administration of the HUD (otherwise known as the Department of Housing and Urban Development. So, does the FHA issue loans like a bank? No, the FHA insures loans, which alleviates risk to, and allows lenders to make loans to buyers with a minimum down payment of 3.5%, and lower FICO scores. – Ken Vanevenhoven
Los Angeles & Orange County Loan Limits
What does this mean for you? You can now purchase a home up to $420,500 with only 3.5% down in Riverside and San Bernardino counties. If you looking for a home in Los Angeles or Orange County, the new ceiling loan limit goes much higher. High-cost areas will be at $679,650.
FHA vs Conventional
Remember: These numbers change based on the number of units your is. A 1 unit home typically refers to a “single-family home” and a 2 unit refers to a duplex-style home. A duplex home is one with two separate residents. This means that the numbers we mentioned are different for consumers looking to invest in a multi-unit property.
Not sure if you should do an FHA Loan or Conventional? Or perhaps you just want to know how much more you qualify for starting January 1st, 2018. We definitely would encourage you to reach out to Ken!