GREAT NEWS FOR OUR FHA HOME BUYERS

The Federal Housing Agency (FHA) has just increased the amount of money that can be borrowed through its mortgage programs by more than $64k in most areas. In high-cost locations, the increase is even greater. New limits will take effect in 2022.

The increases will allow more borrowers to take advantage of FHA’s benefits:
-Low down payment options
-Lower total cash-to-close requirements with gift or seller contributions
-More lenient and streamlined refinancing
-Ability to combine purchase and rehab financing
-In some high-cost areas, higher loan limits than conventional mortgages

Here are the specifics:
-In most areas, the FHA loan limit will be $420,680, an 18% increase over 2021’s limit of $356,362.
-In high-cost areas, the limit moves to $970,800, an 18% increase over 2021’s $822,375.
-In some lower-cost areas or those with higher costs of construction, limits will vary.

If you have questions about what this change could mean for you, please reach out. And if you have friends who may benefit from the news, please pass it along. I'll be honored to help them too.

*Highlands Residential Mortgage, Ltd. is not acting on behalf of or at the direction of FHA or the federal government.