Top 8 FHA Loan Programs
Many people are unaware that the government insures much more than just loans for home buying and many of the most popular FHA programs are actually for refinancing and rehabilitation. It's no secret that the FHA offers a chance for Americans to secure the loan that they need and purchase the home of their dreams. But what is often misunderstood is that there are multiple loan programs offered by the FHA. Different loans offer different solutions for buying and refinancing and depending on your ultimate goals and your current situation there are many different types of loan options available through the FHA.
It's worth taking a few moments and taking a look at some of the main ones available. So, with that in mind, here are the top 8 FHA loan programs available today. Let's take a look at the highest ranked government loan programs now. Review them and you'll likely find the ones that you feel fit your situation the best. FHA insured loans have become a staple in first time house financing in the United States.
No matter the type of loan that you ultimately decide on using, it's worth remembering that most FHA loan programs offer lower qualification requirements and are generally a solid option for anyone who has been struggling with the more traditional loan options out there. FHA has always offered home financing solutions with low FHA-down payment requirements of only 3.5%. If you're trying to buy a home, it's a good idea to at least review the different loan programs offered by the FHA. There's a good chance you'll find one that is right for you.
This article was written by James Swift
Why HUD Increases FHA Loan Limits by Different Amounts
Houses in some parts of the country cost much more than in other parts. A four-bedroom, 2000 square foot house near Houston might cost $225,000. The same home near San Francisco may cost $600,000 or more. If FHA does not increase the maximum loan limit as real estate prices go up, many people would not be able to qualify for an FHA loan. Learn more about the maximum FHA loan limits.
Another problem is that some specific real estate markets go up in value faster than others. So, FHA sets different maximum loan limits based upon specific cities and counties.
If FHA did not do this, many lower credit and income people in more expensive areas would not be able to qualify for a home at all. For those with lower credit scores and lower down payments, FHA loans are the best and only option to buy a home. Conventional loans require a larger down payment and credit score.
Still, even when FHA increases the maximum loan limit for an expensive county, sometimes the prices of homes will increase past the limit in short order. This still can prevent some people from buying a home in expensive areas. Read more on Buying a House with a FHA Mortgage in 2018.
How to Beat FHA Loan Limits
If you are interested in a home that is higher than the FHA loan limit for that area, here are some strategies to still get the home:
The FHA loan is one of the best options to buy a home affordably today. However, you need to be aware of the maximum loan limit for the area you want to buy in California. The Golden State has some of the highest real estate prices in the country. So, keep in mind the maximum loan amount for FHA loans for the county in which you want to buy, and consider other options if you cannot find a home for that amount.