Great news for FHA borrowers in the Austin area including Travis, Williamson and Hays counties. FHA loan limits have been increased for 2015 to $331,200 for single family homes and $424,000 for duplexes.
This would allow a borrower to purchase a $344,000 single family home with a 3.5% down payment.
FHA loans are a great option for many borrowers, particularly for those borrowers whose credit scores are not high enough to qualify for a conventional loan or who need a non-occupying co-borrower. Recently President Obama announced that the mortgage insurance fee for FHA loans would be reduced significantly. That will make a big difference in lowering the monthly mortgage payment for FHA borrowers. FHA loans have become less popular because of their high mortgage insurance fees but this will bring them closer to the mortgage insurance charged for conventional loans.
Often I will talk with someone who is discouraged because they have been rejected for a conventional loan and not been given a FHA as an option. We have lenders in Austin who can approve borrowers for FHA loans with credit scores as low as 580. It’s always a good idea for any borrower concerned about their credit to talk with a mortgage company that offers FHA loans and can guide you if you need help with any credit repair to improve your score.
Please contact me at 512-791-7473 if you need a referral to a great mortgage lender who can help get you approved for a FHA mortgage.
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