12/9/13

** Breaking News - FHA Loan Limit Increases! **


Breaking News!!!!!  

FHA Loan Limit INCREASES as of case numbers issued 1/1/2014 and afterwards.  

So What Does This Mean For Our Buyers?

Right now the FHA loan limit is $271,050 for the Dallas-Fort Worth-Arlington area.   That would be up to a sales price of $280,880 and then 3.5% down.   With the new FHA loan limits with case numbers** issued 1/1/2014 and afterwards, then the new FHA loan limit for our area would be $287,500 which would be up to a sales price of $297,927 sales price (before the 3.5% down).  This is a $17,047 increase in sales price for those buyers wanting FHA financing!


What Are The Advantages/ Guidelines of Going FHA?

  • Minimum Down Payment is 3.50%
  • Buyer must make a 3.5% investment (there are 22 ways that FHA allows funds to close- ask us for the list)
  • Seller can contribute up to 6% of the Sales Price provided that the buyer has the minimum 3.5% down payment.  
  • Standard ratio guidelines are 31/43 but could go higher with AU approval.   Industry guidelines dictate no higher than 49.4% DTI (debt to income ratios) without FHA approved compensating factors.  As of FHA case numbers ordered 4/1/13 or afterwards, debt to income ratios cannot exceed 43.0% if the credit score is 620 or below.  
  • No Termite Inspection Required
  • No Non-Allowables required for the seller
  • It is an assumable loan (important when rates go to 8% and they are at 4%).
  • Buyer can have Federal Tax Liens and not have to pay them off!*
  • FHA uses the standard Fannie Mae appraisal form
  • UPFront MIP is 1.75 and monthly is 1.35.  
  • FHA Allows Manual Underwriting
 
Contact Rochelle today at (214) 814-5411!!  Rochelle has access to a lender that has the following …
 

·         Every person on their team has their FHA DE Certification while allows them to pre-underwrite upfront- No surprises or Oops on the back end!

·         They have exclusive programs that allow buyers to purchase down to a 600 credit score (with overlays)

·         They have an exclusive program that allows a buyer to purchase with NO credit score

·         They have bond programs (both Texas and local city programs) for First Time Home Buyers, Nurses, Policeman, Fireman, and other Professions  

 
 

Counties in Texas
New FHA Limit*
Dallas-Fort Worth- Arlington
Counties of Collin, Dallas, Denton, Ellis, Hood, Hunt, Johnson, Kaufman, Parker, Rockwall, Somervell, Tarrant, Wise
$287,500
Austin-Round Rock
Counties of Bastrop, Caldwell, Hays, Travis, Williamson
$305,900
Houston- The Woodlands-Sugarland
Counties of Atascosa, Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, Waller
$295,550
San Antonio-New Braunfels
Counties of Bandera, Bexar, Comal, Guadalupe, Kendall, Medina, Wilson
$316,250
 

*With Case numbers ordered 1/1/2014 and afterwards

**What is an FHA case number ?  When lenders receive an executed contract in which the buyer is doing an FHA loan (before an appraisal is ordered) we go into FHA connection and order a case number (like an ID number).   That number stays with the property/ appraisal for six months.