FHA and VA Increase Loan Limits for 2017

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FHA and VA increase loan limits for 2017

 

Last week, we announced the news that the FHFA increased conforming loan limits. As a result, the Federal Housing Administration (FHA) and Department of Veteran Affairs (VA) have also increased the limits for FHA loans and VA loans, respectively.

FHA loan limits have increased from $271,050 to $275,665. These new loan limits apply to FHA-insured loans that have an application date of January 1, 2017 or later.
VA loan limits will follow the new limits set for Fannie Mae and Freddie Mac conforming loans. The VA will use these limits to determine how much of the loan they will guaranty and how much an eligible veteran can borrow without requiring a down payment. Veterans should consult their loan officer for further details. You can also visit the Department of Veteran Affairs website for additional information about VA home loans.

A loan limits will follow the new limits set for Fannie Mae and Freddie Mac conforming loans. The VA will use these limits to determine how much of the loan they will guaranty and how much an eligible veteran can borrow without requiring a down payment. Veterans should consult their loan officer for further details. You can also visit the Department of Veteran Affairs website for additional information about VA home loans.

If you are looking to buy a home in 2017, this is excellent news for you! With rising home prices and the market’s return to pre-recession growth, the loan limit increase signifies a growing market. Many homebuyers will now be able to afford larger homes or homes in more expensive areas with better loan terms. If you need help getting started on your home loan journey, check out our blog for more details on the home buying process, FHA loans, and VA loans.

 

 

FHA Streamline Refinancing – Fee Reductions on Horizon

FHA Streamline Refinance Mortgage Insurance Fees Going Down

On June 11, 2012, the Federal Housing Administration will provide relief to certain homeowners with existing FHA mortgages that want to refinance using the FHA’s Streamline Refinance program. This relief will come in the form of reduced upfront mortgage insurance payments and reduced monthly insurance premiums.

The new FHA Streamline Refinance annual premium, which is paid monthly by the borrower, will now be .55% on a streamline refinance of any loan endorsed on or before May 31, 2009. This is a much lower premium rate than the current FHA Streamline rate of 1.2% – 1.25%. The upfront mortgage insurance premium (UFMIP) is a one-time fee collected by FHA and added to the loan balance. FHA recently announced an increase of UFMIP to 1.75% starting April 1st, but as of June 11th this new FHA Streamline Refinance UFMIP rate is only .01% when the previous loan was endorsed on or before May 31, 2009.  All other streamline refinances will still be subject to the UFMIP rate of 1.75%.

FHA Streamline Refinances are the fastest, simplest way for homeowners with FHA mortgages to refinance. Another defining characteristic of the FHA Streamline Refinance program is that a home appraisal is optional. Instead of a new home appraisal, the FHA will allow you to use the original loan’s appraised value as your home’s current value, regardless of what your home is worth today. This may be quite helpful to homeowners who suffered reductions in home values since 2007.

A licensed mortgage loan officer can help you determine if you meet the requirements to be eligible for the reduced premiums available and if a FHA Streamline Refinance is right for you. Click here to find a mortgage loan professional near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.