Nashville Largely Unaffected By FHA Loan Limit Raises

Late last week Congress approved a change to loans insured by the Federal Housing Administration (FHA).  Included in a spending bill passed by both houses was a provision to raise loan limits to $729,750.  The provision reinstated the limit through 2013 at 125% of local median home prices to a maximum of $729,750.  The previous limit for FHA, Fannie Mae and Freddie Mac was $625,500, and the limit was not raised for Fannie Mae and Freddie Mac.

The bill will allow some buyers to purchase a government backed loan that may be less expensive than in the other likely alternative,  the Jumbo loan market.  Senator Corker is against this bill as it has the possibility to further burden tax payers.  A quick review of the Nashville MLS shows 215 homes sold in this area in the last year with a sales price between $625,500 and $729,750.  This is less than one percent of all the homes sold in the MLS within the last year. Due to the current level of home sales in this price range in Nashville, we do not expect any significant gains in the market due the loan limit changes.

Discussion

#1 By FHA Nashville at 7/17/2017 6:30 AM

Home mortgage refinance loans are loans that are obtained by exchanging the accessible loan for another. They are ideal if the rate on the previous mortgage is higher than the rate on the refinanced mortgage.

#2 By FHA Nashville at 7/17/2017 6:30 AM

Contractor mortgages are basically mortgages that dissimilar standard mortgages are looked at on a case-by-case basis. You can search for and find a lot of information on contractor mortgages anywhere online.

#3 By FHA Nashville at 7/17/2017 6:30 AM

I have a mortgage on one home; can I get a second mortgage in Nashville to pay for another house? So, Would I be able to get a second mortgage or refinance my current home in order to pay for a new one?

#4 By Steve at 7/17/2017 6:30 AM

You can only have one FHA loan at one time. However, you may be able to get approved for a conventional mortgage on a second home. Let me know if you need a recommendation to a good mortgage broker. Thank you!

#5 By FHA Murfreesboro at 7/17/2017 6:30 AM

There are so many options in mortgage FHA Murfreesboro like fixed rates, adjustable rates, interest only, balloon payments and many more. Finding the perfect home loan used to be a daunting task.

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