New FHA Home Loan Limits May Help You Buy A House

New FHA Home Loan Limits May Help You Buy A House

It's the new year and with that comes new change. One change in particular is higher loan limits insured by the FHA. For those with "buying a home" on their 2017 list, this is huge. 

It's one thing to have steady income, good credit, and a healthy debt-to-income ratio, but it's another to have the amount of cash to close. Buyers in Southern California are challenged with extremely large down payments that many are unable to afford. Thus, this change provides more borrowing power for those individuals.

Both FHA and Conforming loan balances are now higher in nearly every county across the nation, signaling a healthy and growing economy and market. This could make the difference for those renting and looking to become homeowners in 2017.

Not only do FHA loans now allow lower down payments, but they are also much more flexible and accommodating to the difficult situations that face potential homebuyers. Some of these things include: 

- Debt-to-income ratios as high as 55%

- Credit scores as low as 580 for loans up to $424,100 and as lows as 640 for loans exceeding this amount

- 3-year waiting period on previous short sale

- 3-year waiting period on previous foreclosure

- 2-year waiting period for Chapter 7 bankruptcy 

- Allows a borrower to refinance a second mortgage with LTV (loan-to-value) up to 95.6%

There's been a lot of buzz about the potential 2017 holds for many renters looking to become homeowners. Now, with these new FHA limits in effect, this could be a very favorable vehicle to help consumers fulfill their home-buying dreams.

Kurt Galitski Headshot
Phone: 714-957-6677
Dated: January 2nd 2017
Views: 273
About Kurt: After 15 years of founding and running a successful boutique real estate office in Costa Mesa as a l...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

11 Reasons Why Your Home Isnt Selling - When you first put your house on
Buying A Home Part 2 Choosing The Right Neighborhood - Each and every neighborhood has
KREG Receives International Presidents Elite Award - The Kurt Real Estate Group
Featured In VIEW Magazine - As a recipient of the 

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

The Kurt Real Estate Group - Kurt Galitski
2973 Harbor Blvd. #532
Costa Mesa, CA

Other Locations