A recent article on CNN Money/Real Estate details the FHA’s plans to reduce its stake in the high dollar mortgage market.
Beginning Jan 1, 2014 the FHA (Federal Housing Administration) will be lowering the limit on what they will insure. Currently the FHA insures low down payment mortgages, in most areas, up to $729,750. That amount will be lowered to $625,500 in the upcoming year.
This move indicates a perceived strengthening housing market and helps the FHA move out of the higher priced neighborhoods and back into neighborhoods where the home buyers are less wealthy.
The FHA has been seen as one of the leaders of the recent housing market recovery. They originally raised their limits back in 2008, at the core of the housing crisis, in order to help new buyers enter the market. According to the article, FHA activity has quadrupled over the last 5 years.
To read the full article on CNN, click here. For more information on the Downtown San Diego housing market, or a complimentary consultation on the value of your home, feel free to contact us anytime. ')}