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New FHA Mortgage Limit for Crofton Real Estate

Information provided by Chris Washburn, Vice-President, FNMC A Division of National City Mortgage

 

The conforming and FHA loan limits are official as of today (3/06/08).   For Crofton and Anne Arundel County real estate, the new maximum FHA loan amount for is $560,000

Mortgage applicationWe can begin originating FHA loans with the higher limit immediately.  There were no FHA rule changes but they hinted there could be some in the future (mostly concerned about cash-out refinancing, so it shouldn’t effect the housing market). 

The rate for the new limit FHA is only a little higher than the rate for the old limit FHA (Yes, FHA has 2 different rates depending on the loan size).

Fannie/Freddie are still being very quiet.  The Mortgage Bankers Association thinks it could still be a while until we get anything official from them.  Others have said within 30 days they should have the kinks worked out and pricing together.  I’ll let you know as soon as this happens.

In the mean time, where this FHA change will help you is in the following brief scenarios:

1.  $0 down up to a sales price of $729,750 (using Ameridream and getting the seller to pay all closing costs etc)

2.  No minimum credit score

3.  Total cash 3% (unless you are using the scenario shown in example 1 above, where if the seller pays 3% all the buyer should need is around 3% total)

4.  Non-occupant co-signors ok.  For example – kid buying an expensive house and can’t qualify, but with parents co-signing and giving the down payment, they are fine

5.  Gift for all cash fine

6.  2 years out of bankruptcy ok

7.  Not affected by declining market policies

Obviously, a borrower with good down payment (10% down) and good credit would be better served to go Conventional; otherwise, this is great. 

Give me a call with questions.  Thanks again!

Chris WashburnChristopher Washburn
Vice President
FNMC, A Division of National City Mortgage
7852 Walker Drive #400
Greenbelt, Maryland 20770
Office (301) 220-1000 X232
Fax    (301) 345-4927

 

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