The Federal Housing Administration has released the 2021 loan limits for FHA mortgages. In most of the U.S., the 2021 FHA loan limit for one-unit properties will be $356,362, an increase from $331,760 in 2020!
Certain high-cost areas will have higher limits, reflecting the higher price of housing. Check out the FHA’s list for complete details at https://www.hud.gov/
FHA loans have been helping people become homeowners since 1934. How do they do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.
• Low down payments
• Low closing costs
• Easy credit qualification
What does FHA have for your clients?
Buying a first home?
FHA might be just what they need.The down payment can be as low as 3.5% of the purchase price. Available on 1-4 unit properties.
Financial help for seniors
Are your 62 or older? Do they live in their home? Do they own it outright or have a low loan balance? If you can answer “yes” to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.
Want to make their home more energy efficient?
They can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.
How about manufactured housing and mobile homes?
Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.
Check out the December 2, 2020 Press Release From HUD regarding the 2021
FHA loans have the great advantage of low down payments, starting at 3.5%. They are a real plus for first-time homebuyers, credit-challenged homebuyers, and anyone who hasn’t saved a larger amount for a down payment.
Combine these new loan limits with rates remaining near record lows and the home possibilities open up for your clients