FHA Loan Limits Decreasing In 2014
Friday, the federal government announced it is lowering loan limits on homes in South Florida and across the United States in 2014.
Loan amount by the FHA (Federal Housing Administration) will decrease from $423,750 to $345,000 for borrowers in Miami-Dade, Palm Beach and Broward counties. Taking effect January 1st, these mortgages will applying to single family homes as well as condominiums.
1 unit properties = $345,000
2 unit properties = $441,650
3 unit properties = $553,850
4 unit properties = $663,450
Citizens in favor of lowering limits say the government shouldn’t help the borrowers in regards to the high end of the real estate market. With these reduced prices, buyers will be affected in about 650 counties across America who live in higher home priced locations. The FHA backed about a third of loans used to purchase homes within the last year. They are mainly funded through insurance premiums and with an FHA loan; buyers are able to put down as little as 3.5%. The FHA does not make loans but provides mortgage insurance to home borrowers who do not have enough of a down payment for qualification for conventional loans. Loan limits can vary by product and region as well as included in mortgage guidelines. Jumbo mortgage rates can be higher and even lower as compared to conforming ones.