FHA Home Loan Limits for 2015 Announced

Filed under: Mortgage News

Vector NewspaperHome buyers who are shopping for a home in the Temecula area should pay special attention to the new FHA loan limits for 2015. Just released last week, these new limits will apply to case numbers assigned on or after January 1, and extend through the rest of the year.

Each year, the FHA (Federal Housing Administration) reevaluates the limits placed on its government-insured home loans. Last year, the limits actually decreased, leaving some buyers disappointed that the home they wanted no longer qualified for an FHA loan.

The good news is that there was no decrease this year. If you have your eye on a home that currently qualifies for a FHA home loan, it should continue to qualify after January 1. In fact, limits have slightly increased in some areas. In 2015, the maximum home purchase that can be financed with an FHA home loan is set to $335,350 for Riverside county.

This is a stroke of good luck for those of us in the Temecula area, because the FHA did not lower the loan limits as they did at the end of 2013. We’re one of the few areas in California that actually received a slight bump in FHA eligibility.

The slight raise in FHA home loan limits may also mean good news for anyone wanting to sell their current home. Many potential buyers need to utilize FHA mortgages in order to purchase a home, so greater eligibility could translate into an easier sell for you.

If you’re shopping for a home in the Temecula area, make sure to check out the benefits of FHA financing. While many lenders require you to save up a large down payment – sometimes as much as 20 percent of the home’s value – an FHA home loan allows you to purchase a home with as little as 3.5 percent down. Another benefit of the program is that you don’t necessarily need a perfect credit score in order to qualify.

For more information on buying a home in the Temecula area, or if you have questions about the FHA home loan program, give Bill Provost a call at 760-282-4415 or email bill@homeloanpartner.com.