FHA Extending Higher Limit Loans

by Isaac Benmergui, Esq on December 22, 2011

The 2008 loan limit on Federal Housing Authority loans will be extended into 2013.  With as little as 3.5 percent down, first time home buyers can purchase homes previously out of their reach, although they must also pay for mortgage insurance.

The move is designed to stimulate the higher ticket housing market. Some realtors fear the move could give homebuyers more incentive to walk away from the FHA loans should they find themselves with an underwater mortgage in a few years. If the home costs $700,000 and the owners only have $25,000 invested as a down payment, it could be cheaper to default.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

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