FHA Loan Limits Increased for 2019APPLY FHA Purchase Program
This past month, the Federal Housing Administration (FHA) announced their 2019 loan limits. The standard single family limit has increased to $314,827, up from $294,515 in 2018. Loan limits vary depending on what county you live it. Some counties even have limits up to $726,525, if they are deemed a “high cost” area.
What are FHA Loans? The Federal Housing Administration was created by the Government to increase homeownership in America. An FHA mortgage is easier to qualify for with more flexible guidelines than conventional loans making them accessible to first-time homebuyers. The Federal Housing Administration does not issue or service the loans, they insure them. Private lenders who become an FHA-approved lender issue the loans and the Federal Housing Administration insures the mortgage loan in the event the borrower defaults on the mortgage.
Borrowers with a 580 credit score can qualify for an FHA mortgage loan with a 3.5% down payment. Typically, two years of documented, stable employment and a maximum debt-to-income ratio of 41% are required in order to qualify. The home purchased with an FHA loan must be owner occupied, meaning the property can only be used as a primary home.
If you’re interested in getting pre-approved for an FHA mortgage, or are unsure if you qualify, click on our link above and we’ll respond within 24 hours with a no cost, no obligation consultation.