On November 18, President Obama signed a bill that reinstates higher limits for Federal Housing Administration-backed mortgages in many markets across the country, including California and certain counties in Nevada.
This is good news for homebuyers in all 50 states, since FHA financing supports more than one-third of all home mortgages nationwide.
An FHA mortgage is the best opportunity for most buyers to obtain a low, fixed rate with little equity or a small down-payment – as low as 3.5%, and are available today, including loans at the higher limits, through Pardee Home Loans.
The latest move by Congress followed a significant drop in conforming loan limits, effective as of October 1, 2011. In high-cost states like California, loan limits had decreased by more than $100,000 in most counties, forcing many buyers into higher interest rate loans, higher down payments, lower cost housing or, in many cases, out of the market altogether.
Congressional leaders backing the new bill believe that restoring loan limits will help stabilize the housing market at a time when it is weak, but opponents argue that it contradicts the bipartisan goal to reduce the U.S. government’s role in propping up the housing market. Similar ceilings applying to loans backed by Fannie Mae and Freddie Mac will not increase.
To take advantage of today’s favorable lending conditions, start your shopping at Pardee Homes. We have floor plans and pricing to fit your family. And be sure to check-out our Move-In Ready Homes.
Another Smart Solution from a Homebuilder you trust.
Sources:
LA Times, Higher FHA Loan Limits Reinstated for High-Cost Housing Markets
Wall Street Journal, Lawmakers to Restore Higher FHA Loan Limits
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