San Diego County FHA Loan Limits Lowered for 2014 | Royce Realty & Property Management

San Diego County FHA Loan Limits Lowered for 2014


The 2014 San Diego County FHA loan limits have been lowered from their 2013 levels. The maximum loan limit for a single family dwelling will now be $546,250, a significant decrease from last year’s $697,500 for San Diego FHA loans. FHA loans with loan amounts below $417,000 in San Diego are considered “conforming” and will have slightly lower rates and less stringent guidelines.

FHA Loans in San Diego that exceed $417,000 to the maximum of $546,250 are classified as “jumbo” or “High Balance”. San Diego High Balance FHA Loans will have slightly more restrictive guidelines and rates that are about .25% higher than the conforming loan amounts. High Balance FHA loans remain one of the few options for San Diego Mortgage Brokers to get loan amounts in the $500,000 range without going with a San Diego Jumbo Loan or a VA Loan.

The FHA loan program is a great low down payment loan option for San Diegans and is used many times by First Time Home Buyers. It offers great flexibility, low rates, and an opportunity to buy a house with as little as a 3.5% down payment.

There are many other benefits to the San Diego FHA loan for borrowers. The 3.5% down payment on a purchase can be gifted to the buyer by relatives. This allows San Diego First Time Home Buyers or others who have not been able to save in today’s current economy to buy a home without having to accumulate the down payment on their own.

FHA loans in San Diego allow non-occupying co-borrowers as well. This is another great way for San Diego First Time Home Buyers to get into the housing market because parents can help them qualify for the loan. San Diego FHA loans still allows the seller to pay up to 6% of the purchase price to cover the buyer’s closing costs.
The up-front mortgage insurance premium remains at 1.75% for San Diego FHA loans as of April 2014. The good news is, this premium is not paid in cash, it is included in the financing of the loan and does not affect your loan-to-value ratio.

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