Effective January 1, 2013, FHA (Federal Housing Administration) has raised the loan limits for 1-4 family dwellings. See the new loan limits for Anchorage, Mat-su and Kenai Peninsula area below:
| Area |
Single
Family
|
Duplex | Tri-plex | Four-plex |
| Anchorage & Mat-su | $355,350 | $454,900 | $549,850 | $683,350 |
| Kenai Peninsula | $271,050 | $347,000 | $419,425 | $521,250 |
FHA has also announced that there will be some changes in the mortgage standards. Included in those changes, borrowers with credit scores between 580 and 620 will face stricter limits on their debt-to-income ratio. The planned changes are to be enforced in order to avoid a bailout brought about by the $16.3 billion deficit for the 2012 fiscal year.
FHA will soon require a minimum down payment of 5% for high-cost mortgages that exceed $625,500 instead of the usual LOW 3.5% down payment.
The Wall Street Journal reports that FHA will be replacing it's popular reverse-mortgage option with the Home Equity Conversion Mortgage (HECM) saver which enables older homeowners to withdraw some of the equity in their home in the form of monthly payments for life or a fixed term, or in a lump sum, or through a line of credit. Furthermore, the HECM mortgage can be used to purchase a primary home when the borrower is 62 years of age or older and is able to use cash in hand, money from the sale of assets or money from an allowable FHA funding source to pay the difference between the reverse mortgage and the sales price plus closing costs for the property. (Source: www.hud.gov)
Next year, FHA also plans to raise the annual insurance premium paid by borrowers.
Without the plans, the agency may require a taxpayer bailout next year for the first time in its 78-year history. There will be more programs that will be put in place to avoid the bailout.
For more information, please don't hesitate to contact me.
No comments:
Post a Comment