FHA loans and new limits for 2015

Department of HUD has released new limits for FHA mortgages.  The new limits are effective with FHA case numbers pulled on or after January 1, 2015.

In the Minneapolis/St Paul metro area, the new base mortgage is $322,000.  This includes most counties around Minneapolis and St Paul.  Sherburne, Isanti, Sibley, Carver, Dakota are all at $322,000.  If you are buying outside the metro area, you will want to check the county you are buying in.  For example most of the outstate areas are limited to $271,050. If you are buying in Rice County or Goodhue County, you are limited to $271,050.  Cook county is at $282,900.

FHA mortgages are a wonderful way for people to buy if they are limited in their down payment – FHA requires 3.5% down, it can all be a gift from a family member.  That can really help people buy their first home. 

If you have had credit issues, such as a bankruptcy or foreclosure, FHA is also more forgiving.  FHA only requires 2 years after a bankruptcy, 3 years after a foreclosure. 

FHA also allows up to 6% in seller paid closing costs.  Usually the seller may not pay more than 3%, but they can pay more if they agree to. 

FHA also has some special programs such as a 203K rehab loan.  This will allow the buyer to make repairs or even update the home after closing.  It allows the buyer to finance those repairs into the new loan.  If the home you are buying needs a new furnace or maybe needs new carpet and applicances, a 203K rehab loan may be  a good option for you.

There are also some benefits for teachers, fire fighters and police with a program called the Good Neighbor Next Door.  It may allow you to get in with less down – maybe as little as $100.

For those considering purchasing a new home, FHA may be a good option for your mortgage.  Make sure you talk to your lender about FHA options.

Leslie Vanderwerf,  NMLS ID#335509, American Mortgage & Equity Consultants, NMLS#150953 – EmailWebsite 

Written By

Currently a Senior Loan Officer at Cross Country Mortgage LLC, it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

Related Posts

HOA insurance changes could lead to inability to buy or sell units

🖨 Print Article There have been changes in homeowners insurance because of an increase in claims due to severe weather such as wind and hail. Last fall I wrote about...

What Every Homebuyer Should Know About Closing Costs

🖨 Print Article Before making the decision to buy a home, it’s important to plan for all the costs you’ll be responsible for. While you’re busy saving for the down payment, don’t...

Subscribe to Our Newsletter for Market Updates & Mid-Century Modern Listings

Our weekly HomesMSP Update includes current local market information and a curated list of mid-century modern properties for sale, plus posts from an inspector, a lender, a stager, info about neighborhoods, life in the Twin Cities… even recipes!

Hidden

Blog Categories

Archives

Sharon and John Hensrud

About Us

The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.