The Home Buyer's Korner

Information presented should be used for educational purposes only.

October 31st, 2015

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GREATER LAIE/HALEIWA HAWAII

The Home Buyer’s Korner

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FHA Jumbo Home Loans

fhaWhile the Federal Housing Administration (FHA) is known for helping modest and average priced home buyers or refinance their primary home, changes have been made to the federal program that allows the FHA to now insure higher loan amounts.

Often called FHA Jumbo Loans, mortgages that exceed conforming loan limits allow home buyers and owner to borrower in high-cost areas to buy or refinance under more flexible lending standards established by FHA. Because jumbo mortgages are purchased and sold on a smaller scale, they typically have higher interest rates than conforming mortgages.

Jumbo loans are those which exceed the limit set by Fannie Mae and Freddie Mac, which are limited by law to a maximum mortgage they can purchase. Home buyers and owners who need a loan above this limit will pay a higher interest rate for a “jumbo” loan than a “conforming” loan. The conforming loan limit is $720,050 for a single-family homes here in Oahu.

Advantages of FHA Jumbo Loans

FHA Jumbo, or FHA High Balance loans, allow buyers to purchase or owners to refinance a home in Laie or Haleiwa, HI with minimal cash down or equity, versus a conforming jumbo loan, or agency jumbo loan. While home buyers and owners must have higher FICO scores to apply than for a typical FHA Jumbo Home Loan they also come with the following advantages:

  1. 10% down payment required for FHA loans over $720,050, compared to a down payment of 20-35% down for conventional jumbo loans.
  2. FHA loans examine overall credit, not just FICO scores. FHA loans have less stringent credit requirements than conventional mortgages.

FHA Loan Limits Allowed by HUD

Jumbo loans may be a conventional loan or FHA loan. FHA loan limits have been increased to $793,750 for a single-family home and higher loan limits are available for two to four family properties when one of the units are owner occupied. With these higher loan limits, the FHA Jumbo home loan is a viable option to consider, even for the million dollar+ home buyer.

Loan limits are determined by the geographic area of the property, which is decided by the U.S. Department of Housing and Urban Development (HUD). Rates for these jumbo, FHA loans are 0.25% to 0.50% higher than true (tier 1) FHA loans that are capped at $720,050

If your mortgage requirements exceed the new FHA high balance loan limits, you should explore jumbo options.

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FIND MORE FORECLOSURES IN & AROUND LAIE/HALEIWA HI

HAWAII HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

START YOUR PATH TO HOME OWNERSHIP TODAY

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