Counties in Kansas and Missouri are a part of this upcoming increase.
According to Zillow, home values across the country increased by about 6% during 2016. Some major metropolitan areas saw double-digit price increases, which resulted in median home prices rising above the current FHA loan limit.
With the FHA loan limit increase, high-cost areas will see the “ceiling” increase from $625,500 to $636,150. The FHA is also increasing the “floor” from $271,050 to $275,665.
In Kansas, the median home value rose 6.7% this year to $144,900. It’s expected by Zillow that this price will increase by about 3.2% throughout 2017. For Missouri, home prices are valued at a median of $140,100, which is 6.1% higher than last year. Homes in both states are predicted to rise by at least 2.5% in the next year.
What is an FHA Loan?
FHA loans are mortgages that are insured by the Federal Housing Administration, which is an agency under the U.S. Department of Housing and Urban Development. Borrowers pay for mortgage insurance, which enables lenders to offer loans at affordable interest rates with more flexible requirements and lower down payments. The insurance that borrowers pay for protects the lender from losing money in an instance that the borrower ends up defaulting on the loan.
How Do I Qualify for an FHA Loan?
If you’re unsure whether or not you may qualify for a certain type of mortgage loan, make sure to speak with an experienced mortgage broker who can help you determine your eligibility. We have helped countless borrowers find plans that are ideal for their unique situation – both financially and personally. Don’t hesitate to contact us with any questions you may have.