Posts Tagged ‘how much can I afford’

New FHA max loan limit

January 8, 2019

Just as conforming loan limits rose again this year, the maximum loan amount for FHA loans got a bit higher too.

Remember the maximum loan amount for FHA loans vary from county to county; meaning, the max loan amount is determined by the county in which the property resides.

  • The new FHA loan limit for 2019 is $379,500 for the metro Atlanta area.
  • The non-metro max loan amount also increased to $314,827.
  • Georgia also has some counties with max amounts between those ranges (for example, Clarke county is $341,550).

For those who want to see their specific county, use this lookup tool provided by HUD. Just choose your state and county then press “send” to get the exact amount.

The new limit for metro Atlanta counties means a buyer could purchase a $393,000 home and make just a 3.5% down payment. Buyers can look to purchase a home for more than $393,000, but they will need to make a larger down payment. For example, a person could buy a $400,000 home using an FHA loan. Since the max loan is capped at $379,500, the down payment will need to be about 5% instead of the minimum 3.5%.

I know what you may be thinking… why put 5% down and use an FHA loan? Wouldn’t a conventional loan be better? True. Maybe. Remember for those with credit scores under 680 who make a 5% down payment, the private mortgage insurance for a conventional loan is higher than the monthly mortgage insurance for an FHA. Also, the mortgage rate is higher for the conventional loan versus the FHA loan.

This is why it is imperative to speak with a licensed mortgage lender about the differences in loan programs instead of assuming an FHA loan is only for first time home buyers OR never consider an FHA loan if you can make a 5% down payment. The specific details of each client’s situation could make one program more attractive than the other even if it goes against what most people would consider normal.

Looking to purchase a home in the state of Georgia? Unsure of the loan program that is right for you? Contact me today. I can get you prequalified for a home loan in a few minutes, and we’ll discuss the pros and cons of each loan program to ensure the best fit for your situation.

Lower Jumbo Rates

May 23, 2016

blog-author-clayjeffreys3

For those out there looking to buy a home with a Jumbo loan, which is a loan amount over $417,000, there are a couple of broad options.

  1. Go with great customer service, but maybe a higher interest rate.
  2. Use one of the big banks who, at times, “discount” the Jumbo interest rate if also opening a checking account at their institution. The larger banks do this sometimes with their Jumbo loan rates as a “loss leader”…. discount the rate to secure a financial relationship with other investment accounts.

So those are the broad options… dealing with some of the potential downfalls with a big bank for a lower rate OR great service but at a higher rate. If there were only a way to combine the two. Well, there is!…

We now have access to one of the larger bank’s Jumbo loan program, which works like this:

  • their Jumbo rates are some of the best in the market, and there is a way to make them even lower.
  • if you open a checking account and agree for the mortgage to be paid via auto draft from that checking account, the interest rate is lowered an additional 0.250% in rate.
  • you get to work directly with a smaller licensed lender at Dunwoody Mortgage Services. I would be your direct contact from start to finish. You would never have to phone a call center or be placed on hold waiting to speak to someone.

It is the best of both worlds!

Looking to buy a home and needing a Jumbo loan? Wanting to avoid call centers and being on hold to get updates on your loan? If you are buying in the state of Georgia, contact me today. I can help you get started toward your home ownership.

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Let’s Chat.

March 8, 2010

I have turned on Meebo (an instant chat feature) on “the mortgage blog” available for you to ask a question, comment about an article (which almost always gives me a great idea for another article), or just pop-in and say “hello.”  So if I’m online and you’re online and you have a question about your mortgage, and I just might have the answer to that question . . . well, give it a shot . . . let’s chat. 

I realize that the idea of an online instant chat feature is not a novel idea.  BUT, the idea of an online instant chat feature that is connected to someone you know (and someone who is actually in the U.S), english first language, probably IS quite unique.  🙂

Simply go to the home page for “the mortgage blog” and look in the right column and chat (type) away.  Happy chatting!