FHA changes make loans easier and more attractive
The [tag]Federal Housing Administration[/tag] has undertaken “several significant changes” during the past 12 months. Among a bevy of improvements, the [tag]FHA[/tag] has raised its loan limits, albeit not as much as the agency and lenders would have liked; moved away from onerous repair and inspection requirements; and generally retooled the lending process to make it less cumbersome for borrowers and their lenders.
FHA Commissioner Brian Montgomery is convinced these changes will “bring FHA into the 21st century and make us a real player in the mortgage market again.” At the same time, though, the agency hasn’t been sitting around waiting for something to happen. Here’s a brief recap: In January, it raised its maximum loan limit by nearly $50,000, to $362,790, in the nation’s most-expensive markets. The ceiling was bumped to $220,160 practically everywhere else — but somewhere between the two extremes in 468 counties. The FHA is asking lawmakers to raise the lid in high-cost markets to $417,000 this year and possibly even higher in subsequent years. But $362,790 isn’t exactly pocket change. With 3 percent down, it’s enough to buy a house priced at $374,010.