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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.
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.”
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.
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.
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:
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.
Contact Niki Cronin for further information about purchasing a home in Southwest Riverside, California.
Landscape design photos courtesy of Aloha Landscape and Design: http://alohalandscapeanddesign.com/