FHA Loan Increases For 2018

FHA Loan Increases in 2018

The Federal Housing Administration recently approved increases for 2018 FHA loans! With generous credit score qualifications, these increases are enabling people to get more house for their money.

Changes to FHA loan limits vary by state and county, and we have highlighted below the changes affecting counties Keystone Custom Homes currently builds in.

What Is An FHA Loan?

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. Borrowers with a credit score of 500 or higher may qualify with a 10% down payment. Because this type of loan is more flexible than a conventional loan, borrowers are required to pay for mortgage insurance.

Click here for a full list of requirements to qualify for an FHA Loan.

Increase Amounts By County

Adams County, PA increased by $18,850 to $294,515
Berks County, PA increased by $18,850 to $294,515
Cecil County, MD increased by $5,750 to $385,250
Chester County, PA increased by $5,750 to $385,250
Dauphin County, PA increased by $18,850 to $294,515
Frederick County, MD increased by $43,500 to $679,650
Lancaster County, PA increased by $18,850 to $294,515
Lebanon County, PA increased by $18,850 to $294,515
Montgomery County, PA increased by $5,750 to $385,250
York County, PA increased by $18,850 to $294,515

Don’t see your county? Click here to find out.

What Does This Mean For You?

If you are looking to build a home in one of the counties listed above, you can benefit from these increases! These loan increases are a result of a higher median home price. This means that the increases grow as home prices go up, allowing you to apply for apply for a bigger loan.

An FHA loan can also benefit you if you don’t have a great credit score. While your credit will impact your interest rate, you still have the opportunity to live in preferential areas you may not qualify for otherwise.

More Information

If you’d like more information about getting an FHA loan for a Keystone Custom Home, please click here and our Online Advisor can put you in touch with one of our preferred lenders.

 

Sources: Zillow.com, HUD.gov