Search FHA Mortgage Limits

Nationwide Equities is a Federal Housing Administration-approved lender. The FHA, which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. FHA loans have lower down payment requirements and are easier to qualify than conventional loans. FHA loans cannot exceed the statutory limit. The HUD is the federal agency responsible for national policy and programs that address America's housing needs. FHA plays a major role in supporting homeownership by underwriting homeownership for lower- and moderate-income families and assists first-time home buyers and others who might not be able to meet down payment requirements for conventional loans by providing mortgage insurance to private lenders. Everyone, who has a satisfactory credit record, enough cash to close the loan, and sufficient income to make monthly mortgage payments can be approved for a FHA-insured mortgage.

FHA-insured loans are available in urban and rural areas for single family homes, for 2-unit, 3-unit, and 4-unit properties, and for condominiums. Interest rates on FHA loans are generally market rates, while down payment requirements are lower than conventional loans. Down payments can be as low as 3 percent, and closing costs can be wrapped into the mortgage.

With an FHA-insured mortgage, you can make extra payments toward the principal when you make your regularly monthly payment. By making extra payments, you can repay the loan faster and save on interest. You can also pay off the entire balance of your FHA-insured mortgage at any time.

Section 203(b) is the most frequently used FHA program. You may use this program to purchase a new or existing one- to four-family homes, including manufactured homes, in both urban and rural areas. A section 203(b) fixed mortgage may be repaid in monthly payments over 10, 15, 20, 25, or 30 years.

Section 234(c) provides mortgage insurance for buyers who wish to purchase a unit in a condominium project. The condominium may consist of more than one building, such as a group of row apartments, high-rise buildings, townhouses, or any combination of these structures. Any condominium project must be approved by HUD.

In some cases, HUD insures loans (section 237 loans) for people who have had credit trouble and do not meet standard credit requirements to buy low cost homes.

• Pre-qualify for an FHA Home Loan
  To pre-qualify for an FHA loan, you should be able to demonstrate employability, job stability and reliability. To the FHA, reliability includes holding a steady job for at least two years with the same company or employer and increasing or at least maintaining consistent income. The FHA would like to see that any foreclosures or bankruptcies on your record are at least three years old. The FHA loan bottom line: demonstrate that you have been a good credit risk for two years or more and you will have a much better chance at pre-qualifying for an FHA loan.
• How does having an FHA loan benefit me?
  Unlike conventional loans, FHA-insured loans require small down payments. There is more flexibility in an FHA loan than conventional loans in analyzing household income and payment ratios. The cost of the mortgage insurance is passed along to the homeowner and typically is included in the monthly payment.
• How can the FHA help me buy a house?
  FHA understands that many homebuyers may have had some financial problems in the past or don't have a lot of money saved. That doesn't mean you can't buy a home. Because FHA insures your mortgage, lenders may be more willing to give loans with lower qualifying requirements, making it easier for you to qualify (or get approval). Even if you have had credit problems such as bankruptcy, it may be easier for you to qualify for an FHA loan than a conventional loan. FHA has a low 3% down payment requirement, and that money can come from a family member, employer or charitable organization. Many other conventional loans don't allow this.
• How do FHA loans compare to conventional loans?
  Conventional loans usually require a larger down payment. And, if you have less than perfect credit you may not qualify for many conventional loans and find yourself being offered loans with higher interest rates and/or fees than you expected. The best thing to do is compare the cost of the conventional loan to an FHA loan line-by-line. What are the fees, interest rate and mortgage insurance on each? How much down payment is required? For some borrowers, a conventional loan may be less expensive. For many others, it will be more expensive than FHA.

Same as FHA above with the ability to finance home improvements that are needed. One mortgage is given based on the value plus improvements up to 115% of the future value. These improvements must be over $5000 and can be for a new kitchen, new bathroom, to add a garage or to structurally improve the property. They cannot be to add a swimming pool etc ...

Backed by the Veterans Administration and the federal government, this mortgage is similar to FHA except that you have to be a qualified Veteran or military person.

A mortgage with an interest rate that changes during the life of the loan according to movements in an index rate. Sometimes called ALMs (adjustable mortgage loans) or VRMs (variable-rate mortgages).

Offers 30 and 15 year fixed rate mortgage and competitive ARM products with full documentation, alternate documentation and limited documentation. Cash out and No cash out refinance are allowable. Single family detached, Condo's, PUD's and single-family second homes can be financed with no prepayment penalty.

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. FHA's HECM provides these benefits. You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

A Home Equity Conversion Mortgage (HECM) is a federally insured reverse mortgage. Over ninety percent of all reverse mortgages are HECMs. The Federal Housing Administration (FHA) sets limits on how much a HECM reverse mortgage lender may lend you -based on your age, your home's value or the FHA's lending limit -as well as your total loan costs. HECM loans give you a wide choice in how you may receive the cash from the reverse mortgage.

Nationwide Equities examined all aspects of the reverse mortgage and its cost structure to identify multiple opportunities to enhance benefits and reduce cost beyond just simply reducing the margin. As a result, we now offer variable and fixed rate HECMs within our suite of HECM products. Adjustable options are available based on various financial market indexes plus a margin. The HECM fixed provides the assurance of a fixed rate for the life of the loan.

In addition, the President recently signed into law an economic stimulus bill under the American Recovery and Reinvestment Act of 2009, which raised the national lending limit for HECM reverse mortgages to $625,500. Many seniors have already benefited from an increased cash benefit since the lending limit was raised. Ask us today and determine how much you may be eligible under the new lending limit.