February 12

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FHA Loan Limits Increase to an Even More Classy Range – Texas

By Leesa Sandoval

February 12, 2015


FHA 203k Higher Loan Limits 2015

Yes you heard it correct for FHA 203b and FHA 203k …FHA has increased the area loan limits and now in the Dallas/Ft Worth area we are up to $310,500 for a one unit property.   And that is not all … after January 26th FHA is lowering the amount of the monthly mortgage insurance premium. Currently the monthly charge is 1.35% but now will be a much lower .85%.

Let’s dig into the information regarding the monthly mortgage insurance first.  FHA has published Mortgagee Letter 2015-01 implementing the reduced annual mortgage insurance premiums effective with FHA case numbers pulled after January 26th

The scoop from that letter is this :

Annual premium is reduced 50 basis points on both purchase and refinance transactions.

Applies to all FHA loans w/ terms greater than 15 years

No change to premium for loan terms of 15 yrs or less

Note : there is no change to the upfront mortgage insurance and the fact that the mortgage insurance will be on the loan for the life of the loan…unless a refinance of course to a conventional product at a later time.

So what can this means for buyers and the actual monthly mortgage payment?  Take for instance a home in Texas that a buyer wants to purchase and put the least down that the program allows which is 3.5% of the pruchase price.   Currently the monthly mortgage insurance factor would be 1.35% …but after January 26th that amount is going down to .85%.  On a $200,000.00 loan amount that is a savings of about $84.00 per month!!

And just to be clear this applies for the traditional FHA 203b loan and the amazing FHA 203k loan as well.  So buy a move in ready home and you now have more purchasing power due to the higher area loan limit and the lower monthly mortgage insurance …or buy a home that needs a little or allot of TLC using the FHA 203k loan!

If all of the above is not enough for you to be interested in FHA financing….well I have more information to share. At HomeBridge we are now offering FHA loans to borrowers who have a minimum middle fico score of 600.  There will be a few things we will want to see including a couple of months of mortgage payments are set aside and a maximum debt to income limit of 45%.  We are offering these loans with the minimum down payment of 3.5%!  Typically the minimum credit score we would allow would be 640 but with a few overlays we can now accomidate the lower tierd scores as well.

Call me today to get all of the information for financing your next home!

 

 

 

Leesa Sandoval

About the author

• Leesa Sandoval
• 972.725.9110
I have been a Mortgage Loan Consultant in Dallas, TX for over 13 years, and I specialize in FHA 203k Rehab Mortgage Financing .....(Read Full Profile)

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