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The recent passage of the Housing and Economic Recovery Act of 2008 has set new loan loans limits for the Federal Housing Authority (FHA), the Veterans Administration Home Loan Program (VA), Fannie Mae and Freddie Mac.
One of the goals of The Housing Bill and Economic Recovery Act was to stimulate the housing market. The Housing bill offers tax credits for first time buyers and has revised existing loan limits in many of the nation’s metro areas.
The Economic Stimulus Package raised loan limits for FHA loans on a temporary basis, but the passage of the Housing and Economic Recovery Act of 2008 makes the change in FHA loan limits permanent. The Housing and Economic Recovery Act has also allowed Fannie Mae and Freddie Mac to raise their conforming loan limits.
Loan limits vary by region. The new loan limits for Calvert County have been increased to $729,750 for FHA, Fannie Mae and Freddie Mac. The VA loans limit was increased to $417,000.
Most homes in Calvert County are purchased via conventional financing terms; most of these loans are backed by Fannie Mae and Freddie Mac. The loan guidelines currently require 10% – 20% down with a minimum FICO score of 660. Please consult a qualified lender for required down payment and qualifying information.
The second most popular loan in Calvert County is insured by FHA. FHA loans offer buyers the benefit of purchasing a home with only 3% down and will accept FICO scores less than 660. Funds for the down payment can be gifted by a family member. Currently FHA allows down payment assistance from non-profit organizations. Unless amended, please be advised that after September 30, 2008, down payment assistance via non-profits will no longer be allowed. Please consult an approved FHA lender for qualifying guidelines and information. If you need down payment assistance, you are running out of time. You must secure financing and close escrow on or before September 30, 2008.
Following FHA in popularity is the VA home loan program which offers qualifying veterans the advantage of purchasing a home with no down payment and no closing costs. A VA funding fee is required but can be financed into the loan. For eligibility requirements and “no costs” information, consult a qualified lender.
