Skip to main content

Mezzanine/equity financing--What is it?

National Mortgage Professional
Jun 23, 2006

HUD announces higher FHA home loan limitsMortgagePress.comFHA loans United States Department of Housing and Urban Development Secretary Alphonso Jackson has announced that the Federal Housing Administration (FHA) has increased its single-family home mortgage limits by more than 15 percent. Effective Jan. 1, FHA will insure single-family home mortgages up to $200,160 in standard areas and up to $362,790 in high-cost areas. The high-cost amount is almost $50,000 more than last year. The loan limits for two-, three- and four-unit dwellings have also increased. The FHA is sending letters to thousands of mortgage lenders and brokers to make them aware of the higher rates that can help families. "This administration is working to make homeownership more affordable and accessible, so that more families can own a piece of the American dream," said Jackson. "These higher loan limits will strengthen the economy by helping to create more construction and more jobs, while contributing to the president's commitment to create 5.5 million new minority homeowners by the end of the decade." Last year, the loan limits were $172,632 in standard areas and $312,895 in high-cost areas. Five years ago, the limits ranged from just $132,000 to $239,250. These levels were below the cost of many homes in many communities. As a result, families who needed FHA mortgage insurance to qualify to buy a home were effectively locked out of the process. The new loan limits are part of an annual adjustment HUD makes to account for rising home prices. Under federal law, loan limits are tied to the conforming loan limits of Freddie Mac and Fannie Mae, federally chartered corporations that buy and package mortgages. HUD calculates the FHA mortgage loan limit for 3,226 geographic areas within the United States. The limits vary from area to area, but all fall within the new range of $200,160 to $362,790. Higher FHA loan limits don't cost the government any money, because the FHA Insurance Fund is fully supported by premiums paid by borrowers who receive FHA insurance. Many low-income and first-time homebuyers are attracted to FHA-insured loans, because the agency requires only a 3 percent down payment, and this year's increases in insurance totals should only serve to intensify interest. The increases will also benefit senior citizens who qualify for FHA-insured reverse mortgages. For more information, visit www.hud.gov.
Fifth Third Bank Expands Down Payment Assistance Program

The program will provide up to $3,600 towards a down payment for families with low to moderate income.

Industry News
Jun 09, 2021
Filo Mortgage Launches Low-Rate Guarantee

National mortgage lender Filo Mortgage is offering to beat competitors' pricing by $1,000 with its Low-Rate Guarantee.

Industry News
Jun 08, 2021
FAU Index Shows Where Consumers Should Buy Or Rent

Consumers are better off renting in cities like Dallas, Texas

Industry News
Jun 07, 2021
Verus Title Inc. Expands Into Dallas-Fort Worth Texas

Verus plans to take advantage of the Dallas-Fort Worth market before expanding throughout the state.

Community
Jun 07, 2021
Freddie Mac Multifamily Extends Forbearance Deadline To September

Freddie Mac Multifamily extended the deadline for requesting a new COVID-19 forbearance agreement for its Multifamily loans to September 30, 2021.

Industry News
Jun 04, 2021
Fannie Mae Launches 'Your Own Story' To Educate Future Homebuyers

Fannie Mae is seeking to help demystify the homebuying process for future homeowners with “Your Own Story.” A new campaign to educate future homebuyers on the entire process.

Industry News
Jun 04, 2021
Popular
Mike Eshelman
Operations
Jun 01, 2021
Two women having a conversation
Career
May 27, 2021