This just in from the desk of my friend Jeannie Bolger, of Nova Home Loans:
There were some changes other than weather as of October 1st this year. For those of your looking to buy a home, there were several mortgage changes effective last Saturday.
For those looking into FHA (Federal Housing Administration) loans the maximum loan has been reduced state wide. As you may recall, in 2008 a temporary boost to Federal Housing Administration-guaranteed loan was passed. That boost expired October 1st and
In Maricopa County new loan limits are:
| SFR | 271,050 |
| Duplex | 347,000 |
| TriPlex | 419,425 |
| 4Plex | 521,250 |
Anyone looking into VA Funding has noticed a decrease, sometime more than a full % for purchases, on funding fees. Across the board these are positive changes, as the VA loan is already perhaps the best loan option available for today’s veterans and active duty service men and women.
Regular Military Funding:
| Down Payment | First Time Loan | Subsequent Loans |
| 0% | 1.40% | 2.80 |
| 5% | .75 | .75% |
| 10% | .50 | .50% |
Reserves and National Guard:
| Down Payment | First Time Loan | Subsequent Loans |
| 0% | 1.65% | 2.80% |
| 5% | 1.00% | 1.00% |
| 10% | .75% | .75% |
Beginning October 1, 2011, USDA Rural Loans have annual mortgage insurance (3%, paid monthly) and reduced the upfront guarantee fee on purchases from 3.5% to 2%. Unlike FHA insured loans, USDA’s annual insurance fee is for the lifetime of the loan, which is definitely something to think about when considering loans.
Loans can be complicated, but they don’t have to be. Contact Jeannie at (602) 385-4812 today for help.
And, of course, give me a call at 602-456-9388 for property questions.