FHA Loan Limits – Congress Reinstates Higher Cap
FHA Loan Limits have been reinstated by congress to allow home buyers borrow more. On November 17, 2011, congress voted to cap the FHA loan limits through 2013 at 125 percent of local area median home prices. In the Washington, DC area, that would put FHA backed loans at $729,750 for single unit properties. With a loan of $729,750, that would put a possible purchase price cap of just over $756,000 with the minimum down payment at 3.5%.
With the FHA Loan Limits increase, this policy does more than help out wealthy borrowers in expensive areas of the country, is also helps the middle class in the same way by offering the same borrowing opportunities.
Are you thinking about buying a fee-simple home or condo? If you are looking to buy a condo, read Pitfalls of Buying a Condo with FHA Mortgage.
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