Updated Limits For FHA Mortgages In Maine

FHA adjusts their mortgage limits yearly. If you are buying a property this season and intend to apply for an FHA mortgage, it is important to be familiar with these limits and how they can fluctuate. Here is some important information on updated limits for FHA mortgages in Maine.

Understanding FHA Mortgage Limits

Mortgage limits are the highest allowed mortgage amounts for an FHA mortgage. The mortgage amount is lower than the purchase price. For example, if you buy a house for $ 300,000.00
and are giving a 3.5% down payment, then the mortgage amount would be $ 289,500.00
.

How Are FHA Mortgage Limits Calculated

FHA mortgage limits range by state and city. Median property prices are analyzed against limits for national conforming mortgages. Conforming mortgages are ones that meet the Fannie Mae and Freddie Mac rules and may be transferred in the secondary mortgage market. FHA uses 65% of the conforming mortgage limit to determine their bottom limit for low end markets. Low end markets are areas where 115% of the median property price is lower than 65% of the conforming mortgage limit. For higher priced regions, the limit goes as high as 150% of the national conforming mortgage limits. High cost communities are those where 115 percent of the median real estate price exceeds 150% of limits for national conforming mortgages.

Updated Limits For FHA Mortgages In Maine

In low end markets, the mortgage limit is $271,050. Mortgage limits for high cost areas is $625,500. So, in no area will it be less than $271,500 or go above $625,500. This floor and ceiling matches the previous year, but a majority of markets are not at the min or max and will therefore notice a change for this year. There are also differences for single family versus multi-family properties. Exact mortgage limits for your area are available on the HUD website at https://entp.hud.gov/idapp/html/hicostlook.cfm.

Why Is It Important to Understand Updated Limits For FHA Mortgages In Maine

If you plan to use the FHA program, you must remain aware of the updated limits for FHA mortgages in Maine. Purchasing a home above the limit may result in a larger down payment or require you to look into a different mortgage program. For example, if the mortgage limit is $ 500,000.00
and you intend to put 3.5% down, then your price limit is $ 518,134.72
. Selecting a property for $ 528,497.41
leads to a $ 10,362.69
difference. The buyer would need to cover those funds. If you do not have the extra money, this may be detrimental. Don't forget that the max purchase limit may be different for every community that you are considering. It is a good idea to know this prior to making an offer.

About Mini Major

Mini views the purchase or sale of a home as a major life transition that usually evokes a wide array of challenges and emotions She brings her strong analytical, communication, and mediation skills to that process. For buyers, she helps to assess realistic goals and maps out a facilitation strategy that is uniquely designed to meet their individual styles with limited stress. For sellers, she provides honest, factual information necessary to set the right price and, together with the extraordinary resources of the Bean Group, provides state-of-the art marketing materials to present that property with appeal to the most appropriate potential buyers.

Ask a Question..

* indicates required field