How Will the New FHA Loan Limits Affect My WA State Mortgage Loan Fees?
During the onset of the housing market crash, the president signed an order to cap the FHA loan maximum during the volatile ups and downs that were occurring. Effective October 1, 2011 those revisions have been rescinded and the new FHA loan limits have been raised to attract more home buyers. This has caused some controversy in the mortgage loan community because while the FHA loan maximum was raised, it remains the same for both Freddie Mac and Fanny Mae. This means that more people may go to the FHA for their home mortgage loans.
The new FHA loan limit has raised the available funds for an FHA loan in Washington State to accommodate home buyers in each county who are seeking a new residence. For more information you can find the Washington county FHA limits here to see what the FHA loan maximum is for your area. Once you have an idea for the amount of money you may be able to get for your home mortgage loan there are some things to consider:
What will the mortgage loan fees include?
With a higher FHA loan maximum comes higher loan fees. Make sure you fully consider the parameters of your FHA loan because in the end extra fees may not be worth it. Take some time to look at different offers from Washington mortgage loan companies because there may be a better deal out there for a less expensive home. The new FHA loan limits may seem like a reprieve from the recent cap on mortgage loans, but there are always strings attached.
How Much Will I Need for a Down Payment?
FHA loans have more strict requirements for their borrowers, and you may need to pony up more dough before you can qualify with the new FHA loan limits. To avoid loan default and foreclosures, FHA loans will usually require more of a down payment and higher credit standards from people seeking a mortgage loan. Make sure you have all the information you need before you get your hopes up for and FHA loan amount. You may not qualify as easily for an FHA loan.
If you decide on an FHA loan to buy your new home in Washington State, make sure you vet out all the options available to you first. Shop around with different Washington mortgage loan companies to see if you can find a good deal on a home that may be comparable to the one you are trying to purchase. Get all your ducks in a row first and make sure you fully understand what the extra costs may be when you choose an FHA loan.