Lakeland Mortgage Update: 2010 FHA Loan Limits Released

Home buyers looking to buy Lakeland real estate using FHA loans take note, the FHA has released its loan limits for 2010.

FHA home loans represent federal assistance mortgages made by lenders and receive backing by the government.   Though some believe that the FHA lends money – this is not the case.  Rather, the FHA insures loans made to homeowners by federally-qualified lenders.

Though home sales in Lakeland have been lower than we’d like to see, those homes that are being financed are – by in large – being done so using FHA mortgages.  This trend meets with national figures on FHA mortgages when we compare 2006 figures vs. 2009 figures…

  • 2006, FHA insured 3.3% of all mortgages made
  • Q2 2009, FHA insured 19.2% of all mortgages made

FHA guidelines play a large role in the rise in FHA mortgage popularity.

A big guideline placing FHA mortgages in a brighter light for most entry level borrowers is the fact that they have lower downpayment requirements than do their conforming mortgage cousins Fannie Mae and Freddie Mac.  Credit standards tend to be a bit more lenient as well.  The FHA allows downpayments of 3.5 percent for homes in Lakeland and Fannie Mae and Freddie Mac do not, as an example.

Lakeland FHA loans are also attractive because they aren’t subject to credit score fees the way that conforming mortgages are. Through Fannie or Freddie, Lakeland home buyers with a 650 credit score and 20% down are subject to 3% in risk fees.  Using FHA mortgages, the fee is zero, making FHA the better “deal.”

2010 FHA Mortgage Limits

The FHA published its 2010 loan limits. There’s no change from 2009.

The base 2010 FHA loan limits are:

  • 1-unit : $271,050
  • 2-unit : $347,000
  • 3-unit : $419,400
  • 4-unit : $521,250

We say “base” because these loan limits don’t apply to all areas equally.  Higher-cost regions get higher loan limits, based on typical home values.

The official FHA announcement included a complete, county-by-county FHA loan limit list. The first spreadsheet shows each county at or above the $729,750 maximum; the second list is everyone else.

If your home’s county is on neither list, use the “base” numbers above.

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