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FHA Jumbo Loans
Posted by Hector on December 19, 2023 at 11:14 pmWhat are FHA Jumbo Loans?
Peter replied 1 week, 1 day ago 2 Members · 1 Reply -
1 Reply
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An FHA jumbo loan is a type of mortgage loan that allows borrowers to take out a loan amount higher than the conforming loan limits set by the Federal Housing Administration (FHA), while still taking advantage of FHA’s more lenient credit and down payment requirements.
Here are some key points about FHA jumbo loans:
- Loan Limits: FHA jumbo loans exceed the standard FHA loan limits, which are set by county and vary across the country. For most areas in 2023, the FHA loan limit is $498,257 for a single-family home.
- Higher Loan Amounts: FHA jumbo loans can range from the local FHA limit up to a maximum of $1,149,825 in most high-cost areas. This allows borrowers to purchase more expensive properties.
- Down Payment: Like regular FHA loans, FHA jumbo loans require a minimum down payment of 3.5% of the purchase price.
- Eligibility: Borrowers must meet standard FHA credit and income requirements, including a minimum credit score (typically 580+) and debt-to-income ratios within FHA guidelines.
- Mortgage Insurance: FHA jumbo loans require borrowers to pay an upfront mortgage insurance premium (MIP) and annual MIP, just like regular FHA loans.
- Loan Purpose: FHA jumbo loans can be used for purchasing or refinancing primary residences, as well as certain multi-unit properties.
The main advantage of an FHA jumbo loan is that it allows borrowers who may not qualify for a conventional jumbo loan (due to credit or down payment constraints) to secure a larger loan amount with FHA’s more lenient underwriting standards. However, the mortgage insurance premiums can make FHA jumbo loans more expensive over time compared to conventional options for well-qualified borrowers.
FHA jumbo loans provide an alternative for homebuyers seeking higher loan amounts in more expensive housing markets while taking advantage of the flexibility offered by the FHA program.
https://forum.gustanchoassociates.com/fha-loan-limits/
- This reply was modified 1 week, 1 day ago by Peter.
forum.gustanchoassociates.com
HUD, the parent of FHA, sets the new FHA loan limits for standard, and high-cost areas in the U.S. FHA follows FHFA on Conforming loan limits.