Temecula Grapevine

Your source for Temecula, CA and Southwest Riverside County lifestyle, events, & area information

Breaking News: FHA Loan Limits Changing January 1, 2014 – what does this mean for Temecula potential home owners, home buyers

Red Hawk Club house and waterfall Temecula at Michelle's Place Celebration of Life Golf Tournament  (c) Crispin Courtenay

Red Hawk Club house and waterfall Temecula (c) Crispin Courtenay

Congratulations, Temecula. Home prices have continued to increase over 2013, according to a recent story highlighted by Temecula Patch. 

However, in a story recently released by mortgage broker Jeremy Patterson, the FHA announced that the maximum loan limits in high cost areas of the country will be reduced as of January 1, 2014.

Aloha Landscape placed  stone river in the front of this gorgeous home.

Aloha Landscape placed stone river in the front of this gorgeous home.

 

What is an FHA Loan? According to Patterson, “An FHA loan is an type of mortgage that is insured by the Federal Housing Association of the U.S. Department of Housing and Urban Development (HUD). FHA loans have lower down payment requirements and protect lenders from default losses.”

Raised putting green provides entertainment, as well as water-wise use of space in this backyard.

Photo Courtesy of Aloha Landscape, Temecula, Murrieta 

So what does a lowering of the loan limits, or ceiling, mean to the average home buyer? “The calculation of  loan limits will be reduced and the current high “ceiling” of $729,750 will be reduced to $625,500.” Patterson said. “The revisions will be effective for all FHA case numbers assigned on or after January 1, 2014 through December 31, 2014.”

And that could prove a drastic change for potential homeowners in Southwest Riverside County.

FHA Loans Limits for Riverside County, as of 12-16-2013

FHA Loans Limits for Riverside County, as of 12-16-2013

 

Through the FHA web site, the 2014 basic standard mortgage limits for FHA insured loans in Riverside County this shows an FHA Forward one-family limit of $271,050 — a significant drop from year’s past.

Backyard of residence incorporating hardscape, lawn, and putting green in Temecula, CA

Aloha Landscape building backyard dreams in Temecula, CA

According to Patterson’s iMortgage web site, FHA loans are, “A type of mortgage insurance provided by the Federal Housing Administration (FHA), which offers to pay off the loan if the borrower defaults. This makes lenders more likely to disperse larger mortgage loans.

Features of a typical FHA loan include:

  • Down payments as low as 3.5% of the asking price
  • Closing costs included in the loan
  • The ability to add home repair costs to the loan for remodeling
  • Insured financing for modular and manufactured homes

And these are the limits that are changing early in 2014.

“If purchasing or selling a home has been on your radar, there is no time like the present to get moving.” Said Niki Cronin, of Pacific Coast Realty Group.

To view the loan limits in your area, please click here.

Niki Cronin, Pacific Coast Realty Group, Temecula

Niki Cronin, Pacific Coast Realty Group, Temecula

Contact Niki Cronin for further information about purchasing a home in Southwest Riverside, California.

https://www.facebook.com/nikicroninrealty

Landscape design photos courtesy of Aloha Landscape and Design: http://alohalandscapeanddesign.com/

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About Ashley Ludwig

Ashley Ludwig is an Editor for Patch News, Orange County and Los Angeles. She is also an inspirational romantic suspense author.

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