FHA has decided to keep the loan limits for purchases using its program to pretty much the same limits. Which is a good idea of course. As the market continues to struggle, the Fed is looking for ways to boost sales and give prospective homeowners more options for getting into a home. With that being said, Fannie and Freddie will also begin buying loans that have up to a 97% loan to value instead of the usual 95%. Which is great news for homebuyers. Less money out of pocket for down payment. Of course, PMI (private mortgage insurance) will still be required as the borrower is putting down less than 20% of the purchase price. However, overall good news for homebuyers and the Real Estate market overall.
As always, I'm here to help answer any questions that you may have.
Happy Holidays and Happy New Year!
Cheers,
-O
Omar Rodriguez Real Estate (Proud member of National Real Estate Group, Inc.)
BRE 01778166
909-201-3093 Direct
omar4homes@yahoo.com
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