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| Rosemary McGinn |
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| Rosemary McGinn |
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WHAT THE ARTICLE BELOW ALL MEANS: Buyers looking to buy a one family house in Rockland County today can get it with as little as 3% down and can go as high as $729,750 on the mortgage. That means today the maximum purchase price (using the minimum down payment) would be $752,320 and they would be able to get in with as little as $22,570 plus closing costs (there can be a sellers concession for closing costs). Rockland Real Estate on January 1st using the new maximum loan amounts Buyers looking to buy a one family house in Orange County today can get with as little as 3% down and can go as high as $443,750 on the mortgage. That means today the maximum purchase price (using the minimum down payment) would be $457,475 can get it with as little as $13,725 (there can be a sellers concession for closing costs). Orange Real Estate on January 1st using the new maximum loan amounts *NOTE: 2-4 family limits will also be affected with lower loan limits and higher down payments. Washington Report: Anyone in home real estate knows that the FHA program -- once the ugly duckling of the mortgage market -- has turned into one of the hottest sources of financing even in relatively high cost housing markets on the West and East coasts. FHA loan limits are way up, credit standards and debt-to-income ratios are generous, and competitors like Fannie Mae and Freddie Mac keep raising costs on their mortgages because of what they call "adverse" market conditions. Last week, FHA leaders gave their first peek at how they'll be handling the dozens of new responsibilities given to them by Congress in the recently approved Housing and Economic Reform Act. Tops on the list: What to do with loan limits. That's a major issue in dozens of markets where home prices are well above national averages. So here's what's coming: The current, temporary nationwide limit imposed by Congress's economic stimulus package last February will remain in place through December 31st. As of January 1, the limit will fall back to $625,500 in the highest priced housing markets. Now you may think that's a step backwards, but remember: Prior to the temporary economic stimulus legislation, the top FHA limit was around $363,000, while Fannie Mae and Freddie Mac's limit was $417,000. For areas with lower prices, the limits will be set by FHA later this year based on a formula provided by Congress: 115 percent of the median sale price of homes in the metropolitan market. So if your property is located in an area where the median price is, say $350,000, the new maximum FHA mortgage will be $402,500. Some other key changes touched on by FHA leaders in presentations to a Mortgage Bankers Association of America conference in Washington: Starting January 1, the minimum down payment for an FHA loan will be 3.5 percent. That's a half point higher than the current minimum, but Congress wants to make sure borrowers have a real investment in the house they buy. Borrowers can still get help with that down payment, such as gifts from relatives, local government and trade union home ownership programs -- but starting October 1 -- not January 1 -- they won't be able to use any of the popular down payment assistance programs run by organizations that funnel "gifts" from home sellers to buyers. Organizations such as Nehemiah, Incorporated and Ameridream will no longer be able to provide seller-funded gifts in connection with FHA mortgages. So if you're a home buyer -- or a real estate or mortgage professional working with home buyers -- keep that October 1 deadline in mind. FHA Mortgage Limits click here |
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