LoanCentral's Real Estate Lending Blog

Higher FHA Loan

Limits Reinstated!

In 2008 the conforming loan limits had been increased to $ 567,500 in the King, Pierce, and Snohomish regions in reaction to the financial crisis which caused jumbo financing options to virtually disappear.

These temporary loan limits were only in place until September 2011, at which time they were reduced back down to $ 506,000. However, FHA has officially reinstated their higher limits of $567,500 for King, Pierce and Snohomish County, effective immediately and they will remain in place through December 31, 2012.

This means that someone can purchase a home priced up to $ 583,000 with a 3.5% down payment!

With FHA 30 year fixed rates currently in the range of 3.75%, this program provides an amazing opportunity!!!

Conventional financing loan limits remain at $506,000.

The ongoing woes in the financial markets in Europe have continued to lend in keeping mortgage rates low throughout the past week. We are still sitting at record low levels, and this seems to be spurring activity with home purchases.

Nationwide, purchase activity has increased over the past week as consumers are realizing the benefits of the low interest rates coupled with low home prices. In most markets in the United States it is now cheaper to buy than it is to rent!

Interest rate thought for the day: it’s better to be locked and wish you were floating, than to be floating and wish you were locked!