The FHA loan limits in San Diego for 2013 are the same as in 2012. The maximum loan amount will stay at $697,500. Loan amounts below $417,000 are considered “conforming” and will have slightly lower rates and less stringent guidelines.
FHA Loans in San Diego that exceed $417,000 and up to the maximum of $697,500 are classified as “jumbo” or “High Balance” FHA loans. These high balance 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 and Lenders to get loan amounts in the $600,000 range without going with a Jumbo Loan (loan amount greater than a conforming loan, which in San Diego, is $417,000) or a VA Loan (loan offered to American Veterans which in SD County the maximum loan amount to 100% loan to value is $500,000).
The FHA loan is a great low down payment option. It is used many times by First Time Homebuyers. It offers great flexibility, low rates, and an opportunity to buy a house with as little as a 3.5% down.
There are other benefits as well. The 3.5% down payment on a purchase can be gifted to the buyer by relatives. This allows for those, who have not been able to save in today’s sour economy, to buy a home without having to accumulate a gross down payment on their own.
FHA loans allow the option of having a non-occupying co-borrower, a co-signer who doesn’t plan on living there. This is another great way for first time homebuyers to get into the housing market, because parents can help them qualify for the loan. FHA still allows the seller to pay up to 6% of the purchase price in order to cover the buyer’s closing costs.
The up-front mortgage insurance premium is currently 1.75% for SD FHA loans, but there have been discussions that this could increase to 2.0% sometime in 2013. If you are looking to use an FHA loan to purchase a home, you may want to buy before this increase is implemented.
You should do a search for local San Diego Mortgage brokers and seek out an FHA expert for more information and to get started with the loan process.