Putting Out FHA Fires

Our friends at FHA are back to adjusting the loan max limits. And again…change often equals panic. This is not only evident in our emotionally-driven stock market. We also see it just about every time there’s an adjustment to a mortgage policy; whether the perception is that it is a good or a bad adjustment.

In the case of FHA’s maximum loan limits, (the minimum loan is being reduced from 292K to 271K); it turns out the actual number of transactions it will affect in the Tampa Bay real estate market is not huge.

And besides, in a recent post, I detailed the comparison between going FHA and going conventional; and just to quote myself:

“FHA Loans were once the best game in town. If you had less than 20% to put down, FHA was your man. But now… 5% down with a conventional loan may ultimately be the cheaper/faster/better alternative than going the FHA Way.”

There are two sides to every story and the same holds true for mortgage loans. Reality is the side that will dictate what works best for your situation.

At the end of the day, don’t panic until you know how something is going to affect you. Secondly, if something costs you about the same amount, but potentially saves you from jumping through hoops of fire – consider it a viable alternative. Call me if you have any questions.

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