FHA Loan Limit…Not as much as you think!

Only 5% down payment is needed for loans in excess of the FHA limit!

That’s right, in Maricopa county, the new FHA loan limit, beginning Jan. 1, 2009, is $271,050.  The minimum down payment for an FHA loan is 3.5%.

Many people think that 10% down is needed to get a loan in excess of the new FHA limit.  However, only 5% down payment is needed for loan amounts up to $417,000.

Today’s interest rates on a 30-year fixed mortgage, for loans between $271,050 – $417,000, is 5.75%, 5.804% APR.  For a one point origination fee, the rate is 5%, 5.141% APR.

Note that interest rates have been changing quickly, and can change within the day.  The quoted rates assume excellent FICO scores and 5% down payment.  Contact me for updated rates and to discuss your particular scenario.

John Rapasky is the President of the Counsel Mortgage Group, LLC.  He has been in the lending business for 7 years, and is also a licensed attorney, having practiced for 10 years, and practiced as a CPA prior to his legal practice.  John specializes on providing competent mortgage advice and providing loans that are right for you.

John is a contributor to this blog and can be contacted at rapaskyj@aol.com or 480.502.1000.

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