When you are planning to move, you may discover that finding a new home that you adore is half of the battle. Next, you could encounter a variety of financing challenges for homes that are priced above the median sales range. Fortunately, the Federal Housing Administration has increased the previous loan limits for most counties in the United States. Perennial Funding offers affordable FHA mortgage loans to qualified borrowers.
According to the U.S. Geological Survey website, there are 3,141 counties that are recognized within the United States and the District of Columbia. The total count excludes commonwealths, certain districts and municipalities in Puerto Rico. For 2018, the FHA has approved loan limit increases in 3,011 counties. The new provision for additional counties will provide more opportunities for many homeowners, as the loan limit increases in 2017 and 2016 were only for 2,948 counties and for 188 counties, respectively.
The Federal Housing Administration is mandated to periodically adjust its loan limits for single-family homes to 115 percent of the median home sales price. However, statistical data is relied upon to calculate a floor as well as a ceiling for new loan limits. For instance, the loan limit of $294,515 for 2018 is set at 65 percent of the current conforming loan limit of $453,100.
In areas where homes sell in excess of 150 percent of the conforming loan limit, the FHA-insured financing has a ceiling of $679,650.
If a previous attempt to obtain financing for a home resulted in an insufficient loan amount to cover the purchase price, now might be an ideal time to re-apply for an FHA loan with a higher limit. Speak with a local mortgage professional about the approval requirements for a home loan. Contact Perennial Funding today at (888) about affordable home mortgage loans for first time buyers and about financing for previous home buyers.