FHA Loan Limits Decreasing in Atlanta

We are just about to reach the point where we can all stand up and say proudly, “We survived the Housing Market of 2008!“ We are not there yet, but getting close. And one of the things that became abundantly clear to most home buyers is that FHA financing was just the way to go. It will be in ‘09 as well; there just won’t be as much to go around.

And FHA financing is so great because it requires little down payment, flexible sources of the down payment, and allows for lower credit scores without being punished with a higher interest rate.
Times are Changing – and Loans are Lowering
Currently in Metro Atlanta the maximum FHA loan limit is $346,250. That has been nice, and HUD always said that the increase was temporary. And, HUD keeps it’s promises. The Mortgagee Letter dated Nov. 7 confirms that as of January 1, 2009, the maximum loan limit for metro Atlanta will be $320,850. That is for single family homes. Multi-family homes such as duplexes or quads allow for higher loan limits.

So, we will see nearly a 10% decrease in FHA loan limits come January. Not only that, but the minimum down payment will increase from 3% down to 3.5% down.

Will You Be Home for Christmas?

If you have been on the fence about jumping into the market, and are considering buying a home at $350K or less, then you need to jump in quickly. You will save money if you close on the home in December.

Not only that, but in addition to the $7500 tax credit if you are first time home buyer, you will be able to write off the origination fee and possibly other closing costs on your taxes come next April.

What a great time to buy. Perhaps it’s true what they say, “It’s the Best Time of the Year”

Remember, if you are interested in buying a home and taking advantage of the great FHA financing this December, we are Direct Endorsement Underwriters of FHA loans, so we can close quickly so you have a Merry Christmas, in your warm, cozy new home.