It was just announced that the FHA limit for the Greater Washington DC region has been increased to $729,750. This is excellent news for all of us.
Remember, FHA utilizes the same appraisal as a conventional loan and allows for as little as 3% downpayment and up to 6% seller concessions. The required 3% from the borrower can be a gift, though it cannot come from the seller.
FHA is the new subprime for low scoring borrowers as well as for those with little down. Borrowers with scores in the high 500’s are getting approved.
On the heels of the FHA good news announcement from earlier today, there’s more: The Fannie and Freddie Conforming loan limits have also been raised to $729,750. Check this out...
They’ve actually created a new category – “jumbo-conforming” – which is essentially a hybrid of the two previous designations.
We are just getting the information and do not yet have pricing, although I expect that to happen tomorrow, or Monday at the latest. This pertains to loans originated this month through the end of the year.
Clearly, this is some desperately needed good news for the real estate industry. Although details are sketchy, I wanted to keep you abreast of these new developments and will keep you informed as more news becomes available.
As always, I’m here to help you succeed and to answer your questions.
Tim Romp
Senior Loan Consultant
First Heritage Mortgage, LLC
an affiliate of George Mason Mortgage
202-409-1166 direct
240-223-1703 fax
tim@timromp.com
http://www.timromphomeloans.com/
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