Updates About The 2022 FHA Loan

FHA Loan

Finding homes for sale that fit your style and needs are one thing but affording it can be another. Eventually, you would have to start thinking about how you would afford your new home, which can be a bit scary to think about. Luckily there is financial grace for homeowners! We’re talking about housing loans! Along with all the changes this year has brought us, federal loans, the Federal Housing Administration loan (FHA) in particular, has made a few changes. The FHA loan has increased its funding limits for single-family homes in 2022! 

So, what does this mean for you?

To help homeowners afford their dream homes, the FHA has increased its loan amount limits for single-family homes with low to moderate-income and credit scores. The FHA loan provides homeowners with mortgage loans to help finance their homes. This is a big deal for homeowners, given the fact that inflation has affected the housing market, meaning that prices have gone up quite a bit. FHA loans are usually adjusted each year according to the housing market, making it possible for homebuyers to afford housing.

  •  FHA loans have changed from their loan amount limit of $356,362 to $420,680 in low-cost areas.
  • In locations with higher standards of living, FHA loan amount limits have changed from &822,375 to $970,800.

What is an FHA loan?

An FHA loan is a Federal Housing Administration loan that helps homebuyers finance their homes. This loan ensures that you get a mortgage to protect yourself from potential losses, such as protection from the event of a defaulted home mortgage. 

A defaulted mortgage occurs when a borrower fails to make monthly payments on a home loan’s principal balance or interest, resulting in the loss of a house or damage to one’s credit score.

What are the loan requirements?

  • Single-family homes, including two, three, or four-unit homes, can apply as long as the borrower lives in one of the units.
  • Borrowers must meet the FHA lender requirements, including down payments, credits scores, debt to income ratio, mortgage insurance, etc.

           To check if you are eligible for the FHA loan or for more information about the requirements visit, https://www.fhaloans.com/ 

Finding ways to finance your home can be a bit intimidating and stressful. The American Dream aims to simplify the complicated parts of homeownership, from selling to buying the home of your dreams. For more information about ways, we can assist you in attaining your dream home, contact an American Dream Agent today!

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