March 13, 2008
HUD released the NEW loan limits for FHA loans last week in their effort to help out many Americans stung by last year’s disappearance of Non-prime loan products. Deschutes county has the HIGHEST FHA loan limits in the State now at $447,500. This means that many homeowners with less than stellar credit or limited equity and impending rate adjustments can qualify for FHA loans, which have less stringent qualifying criteria than conforming loans. But like many things in life, there’s a catch. Many Banks are charging significant fees for loans in excess of the previous loan limit of $362K for FHA loans that can become quite costly. So while the FHA is willing to bail out many homeowners, it’s not without significant cost.
It’s anticipated now that Fannie and Freddie may also increase their loan limits, but whether they identify specific high cost counties like HUD did is yet to be seen. Additionally, if they do increase conventional loan limits, don’t be surprised to see additional costs to those loans as well.
Carl Salvo
Mid Oregon Lending
497 SW Century Drive · Suite 104
Bend, Oregon · 97702
Ph. 541-728-0390 · Fx. 541-728-0395
Oregon License ML-4707 · NMLS # 277334
