fha home loans – The Real Estate Beat

Federal Housing Administration (FHA) updates its loan limits – Shared Article

A shout out to my friend and lender Christian Carr – NMLS #1466899 for posting this information I felt I should share here.

The Federal Housing Administration (FHA) updates its loan limits and the mechanics of its loan programs each year. For 2025, there are key changes that homebuyers—especially first-time and moderate-income borrowers—should be aware of.

FHA Loan Limits in 2025

• Single-family homes: Loan limits range from $524,225 in low-cost areas (floor limit) to $1,209,750 in high-cost counties (ceiling limit).

• Multi-unit properties:

◦ 2-unit: $671,200 – $1,548,975

◦ 3-unit: $811,275 – $1,872,225

◦ 4-unit: $1,008,300 – $2,326,875

• These limits are tied to median home prices and align with conforming loan ceilings set by the FHFA ($806,500 standard / $1,209,750 high-cost).

Why it matters: Higher limits allow FHA financing for more expensive homes without needing a jumbo mortgage.

FHA Repayment Terms & Refinancing Options

✅ Fixed Terms and Gradual Payment Options

• Standard FHA mortgages come with 15- and 30-year terms

• Graduated Payment Mortgages (GPMs) are also available, allowing payments to increase gradually (e.g., 2.5%–7.5% annually) during the first 5–10 years before leveling out en.wikipedia.org.

🔄FHA Refinance Programs (2025 Highlights)

FHA homeowners may refinance under four main options:

1 Simple Refinance – Switch from one FHA loan to another to lower rate or shorten term, requires appraisal.

2 Streamline Refinance – Less documentation, sometimes no appraisal or credit check, must show “net tangible benefit” and have made 6+ on-time payments.

3 Cash‑Out Refinance – Access up to 85% equity for any purpose; requires appraisal.

4 203(k) Rehab Refinance – Finance purchase or refinance plus home improvements; available for primary residences only.

What Buyers Should Know

• Loan limits expanded in 2025—check your county limits via the HUD lookup tool.

• Graduated Payment Mortgages can help match payments to growing incomes—especially useful for younger buyers.

• Streamline refinances are attractive for existing FHA homeowners: minimal paperwork, faster turnaround—but closing costs apply (~3–6%).

• Cash‑out and 203(k) options remain available, but careful consideration of equity use and repayment ability is essential.

Final Thoughts

If you’re shopping for a new home or refinancing in 2025, FHA’s expanded limits can open more opportunities. Whether you’re looking to lower your rate, tap into equity, or finance renovations, FHA offers versatile programs—but it’s important to choose based on your goals and ability to repay. To verify your specific county’s limit, visit the official HUD lookup tool . For details on repayment plan options, review FHA’s official policy handbook or speak to an FHA-approved lender.

I read this article HERE.

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FHA Trims Waiting Period for Borrowers Who Experienced Foreclosure

Great news for those who experienced hardships during the economic downturn!

FHA Trims Waiting Period for Borrowers Who Experienced Foreclosure

The Federal Housing Administration (FHA) is allowing borrowers who went through a bankruptcy, foreclosure, deed-in-lieu, or short sale to reenter the market in as little as 12 months, according to a mortgage letter released Friday.

Borrowers who experienced a foreclosure must wait at least three years before getting a chance to get approved for an FHA loan, but with the new guideline, certain borrowers who lost their home as a result of an economic hardship may be considered even earlier.

For borrowers who went through a recession-related financial event, FHA stated it realizes “their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

In order to be eligible for the more lenient approval process, provided documents must show “certain credit impairments” were from loss of employment or loss of income that was beyond the borrower’s control. The lender also needs to verify the income loss was at least 20 percent for a period lasting for at least six months.

Additionally, borrowers must demonstrate they have fully recovered from the event that caused the hardship and complete housing counseling.

According to the letter, recovery from an economic event involves reestablishing “satisfactory credit” for at least 12 months. Criteria for satisfactory credit include 12 months of good payment history on payments such as a mortgage, rent, or credit account.

The new guidance is for case numbers assigned on or after August 15, 2013, and is effective through September 30, 2016.

I read this article at: http://www.dsnews.com/articles/fha-trims-waiting-period-for-borrows-who-experienced-foreclosure-2013-08-19

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Changes are Coming to FHA Home Loans…

Changes are Coming to FHA Home Loans

I am a fan of the FHA home loan because it helps so many first time buyers get a home here on the SF Peninsula where home prices are an the high side. What saddens me are the recent changes in store for FHA clients.

Newly Originated FHA-Insured Loans Will Become More Expensive Beginning June 3, 2013.

One of the attractive features of FHA mortgages is the low down payment option. In fact, many FHA loan programs require as little as 3.5% down.

Today, mortgage insurance on FHA loans remains in place for a finite period of time. However, on most new FHA loans originated on or after June 3rd, the MI premium will remain for the life of the loan.

Now sure how this will impact you? Give The Caton Team a call or email!

If you or someone you care about have considered purchasing a home, please contact us immediately to ensure this new FHA policy doesn’t increase the lifetime cost of the transaction. Beating the June 3rd clock could potentially save thousands over the life of the loan.

And please do not be discouraged – there are several different loan options and programs available!

Thank you Melanie Flynn of First Priority Financial for this information. If you would like to connect with Melanie – give us a call or email!