So what exactly does the FHA do? The FHA provides mortgage insurance on loans made by FHA approved lenders throughout the United States. Since it inception in 1934 FHA has insured more that 34 million loans. Generally FHA loans are easier for buyers to qualify for as they do not have the more strict underwriting guidelines of conventional loans.
We have known that it was coming, we just didn’t know how high the limits would be raised. Well we got the answer today. The Federal Housing Administration, FHA, has increased the loan limits on a FHA insured home loan in Metro Atlanta to $346,250 up from $252,890, an increase of 27%.
This action by FHA should help spur the housing industry in the Atlanta market. Any home priced below $346,250 just became easier for more buyers to qualify for.
{ 2 comments… read them below or add one }
FHA loans are the way the market is going. These types of loans are sure to dramatically increase over the coming months. Let’s hope the government gets its act together and things don’t go the way of subprime loans.
Warm Regards,
Rob Lawrence
http://www.battlecall.com
I agree Rob. One of the banks in the Atlanta market stated that their FHA business had increased tremendously towards the end of last year. With the increased FHA loan limits I can only imagine that this trend would continue.