Orange County FHA Loans | Easier Appraisal Requirements for High Balance Loans
Some good news (finally) for Orange County, CA FHA borrowers - FHA has eased the appraisal requirements for “high balance” loans. A High Balance loan in Orange County is considered to be any loan over $417,000, up to $729,750. Under the guidelines that have been in place since FHA began offering High Balance loan amounts in 2008, if the loan to value was higher than 95%, then 2 appraisals were required.
Mortgagee Letter 2009-48 Eliminates Need for Second Appraisal
Mortgagee Letter 2009-48 modifies FHA’s requirements for second appraisals on high balance loans in declining markets, which Orange County, CA is considered to be. (Despite what seems to be stabilization in pricing.) FHA has also required a second appraisal on FHA High Balance cash out refinances. Now, that is no longer the case.
Great News for Orange County FHA Home Buyers!
For those Orange County home buyers purchasing properties with FHA loans over $417,000 this is great news! Getting two appraisals is not only an added expense, but can also add complications to the deal. Even if both appraisers agree on the properties value, one may request conditions that another appraiser doesn’t. This can only confuse the FHA underwriters and cause delays (speaking from personal experience). Now, the confusion caused by a second appraisal has come to an end.
High Balance FHA Will be Popular in 2010
2010 will be a big year for FHA loans in Orange County, especially High Balance FHA loans. FHA offers home buyers the ability to purchase homes for prices as high as $750,000 with only 3.5% down. 2010 will be a great year for not only first time buyers but also move up buyers. While homeowners in Orange County have lost equity in their homes over the past few years, there has not been a better time in many years to “move up” into a bigger or nicer home. Plus, with the $6,500 Tax Credit for Move Up Buyers, Orange County home owners have an extra incentive to make the move.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
*Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
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