Articles Published in: December 2016

December 5, 2016

Higher FHA Loan Limits For 2017 Announced

The FHA official site has announced higher FHA loan limits for 2017. According to a press release on the official site, The Federal Housing Administration (FHA) today announced the agency’s new schedule of loan limits, and due to an increase in housing prices, most areas in the country will see a slight increase in loan limits in 2017 These loan limits are effective for case numbers assigned on or after January 1, 2017, and will remain in effect through the end of the year. The announcement includes word of a higher FHA national loan limit “ceiling”, which is set to increase to $636,150, up from 2016s $625,500 limit. The “floor” is also scheduled to increase in 2016 to $275,665, which is up from the previous years $271,050. Recent changes in | more...

December 5, 2016

Mortgage Rate Trends: Higher, Then Lower

By Joe Wallace

Since our last look at mortgage loan interest rate trends, rates spiked to 24-month highs (Thursday), but then recovered on Friday. Thursday’s move took 30-year fixed rate conventional mortgage loan rates to a range between 4.25% and 4.375% (best execution). But Friday saw the same rates move back down to at or near 4.125%, best execution. On both Thursday and Friday, FHA mortgage rates remained at 4.0%, but that’s up from a previous range that still had a bottom end in the sub-four percent zone. That is gone for now, but FHA rates, best execution, haven’t been in the four percent zone in quite some time leading up to the current upward trend. Friday’s rate recovery happened in spite of job report numbers that, in times past, have served to | more...

December 2, 2016

FHA Announces 2017 HECM Limits

By Joe Wallace

The FHA official site has been updated recently to include 2017 loan limits for Home Equity Conversion Mortgages, also known as FHA HECM loans or FHA reverse mortgages. According to the press release at www.FHA.gov, “The Federal Housing Administrations (FHA) Home Equity Conversion Mortgage (HECM) loan limits for Traditional HECM, HECM for Purchase, and HECM-to-HECM refinances are governed by the maximum claim amount limitation in sections 255(g) and 255(m) of the National Housing Act, which contains cross-references to section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act”. The FHA updates HECM loan limits annually, and those updates are effective for the new calendar year; limits may be subject to change depending on legislation, FHA requirements, or other legal factors that may apply before or after the existing year’s update | more...

What You Need To Know About Your FHA Home Loan

December 1, 2016

FHA Loan Applications in 2017: Are You Ready?

By Joe Wallace

For potential borrowers thinking of filling out FHA loan applications in 2017, there are a number of areas to think about as you prepare. Some potential borrowers are ahead of the curve when it comes to getting financially ready for a major loan application, while others may overlook important areas that need attention long before the loan paperwork is filled out. Do you know how ready you are to fill out that mortgage loan application? One question to ask yourself before the new year arrives is how long youve been planning and preparing for the new loan. Many financial experts advise taking at least a full year to save, budget and research the new loan. Why is research needed? In several ways, doing some research can help you decide what | more...

December 1, 2016

2017 FHA Appraisal: When Do You Need One?

By Joe Wallace

If you aren’t sure whether you need a 2017 FHA appraisal, there may be a very simple answer depending on what kind of home loan or refinance loan you are seeking. For all “forward mortgages” including new construction, proposed construction, or existing construction loans, an FHA appraisal will be required. New purchase loans or forward mortgages require the lender to establish the fair market value of the property to be purchased. That’s where the appraisal comes in. An FHA appraisal establishes the fair market value and insures the home meets basic, minimum standards. The lender will calculate the loan amount based on either the fair market value of the home established in the 2017 FHA appraisal or the asking price of the home, whichever is lower. For new purchase loans, | more...