Sometimes people think that FHA is an acronym that means first time homebuyer. The Federal Housing Authority (FHA) loan isn’t just for first time homebuyers. In fact, you can have multiple FHA loans. It is required that you plan to reside in the home as your primary residence though. It’s conceivable under certain conditions that you could rent your current home with an FHA loan already in place and relocate to another home and get another FHA loan, having two FHA loans at the same time. “FHA” does not mean “first time homebuyer”.
The FHA, administered by the Department of Housing and Urban Development (HUD), places limits on the mortgage amounts in various counties. I guess HUD doesn’t want to be financing homes for the rich and famous buying their mega mansion. They want to finance homes for the common folks like me! HUD changes their limits as prices fluctuate. The limit is going down this time which seems bad, but it’s because homes are so much more affordable now, and that’s a good thing!
My primary area of business is Okaloosa County,Florida. The limit in Okaloosa County is reducing from $312,500 to $271,050. To check the loan limit in your area, click the HUD logo above. It’s important to note that this change affects loans registered (not necessarily closed) with FHA on or after Oct 1, 2011. So if you’re working out a purchase agreement in this price range that isn’t going to close for several weeks or months, that’s ok so long as your lender (me, of course) gets it registered with FHA before Oct 1.
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