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The FHA is hitting the high notes, bumping up loan limits to $498,257 in Luna Lovegood markets and up to $1.72 million in the “My bank account is a VIP” states like Alaska and Hawaii.
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Home prices have whipped up a frenzy, with annual appreciation chugging along at a brisk 5.5 percent.
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“Affordable” and “high-cost” states are now terms with real significance, as they dictate the size of the wad of cash the FHA will let you borrow.
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To the surprise of no one, Hawaii and Alaska are considered high-cost states, because nothing says “expensive” like sunsets on the beach and polar bears in your garden.
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Yet, these new limits are not just for spontaneous “I’m going to buy a house today!” decisions; they are combined with low down payments and flexible credit score requirements making the dream accessible to potential homeowners who otherwise might have been left out in the cold.
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In the face of this glorious new era of real estate lending, the public’s reaction seems to be a unanimous cry of “Yippee, I can finally afford to buy a house in a state where it costs $7 for a loaf of bread!”
Closing Thoughts
In the real estate wonderland that is the current market, the FHA is stepping up its game, flexing its muscles, and pushing the envelope (or should we say, the wallet?). With loan limit increases that seem more like milestones in a high-stakes poker game, common folks dreaming of owning a home in an “unaffordable” state can finally see through the champagne dreams and caviar wishes. So, if you’re ready to dodge polar bears in your Alaskan garden or outswim sharks on your way to the Hawaiian beachfront, tighten your belts and get your swim trunks ready— homeownership has never looked this sunny. (Or frosty, depending on your preferred climate.) Remember, friends, in the wild market of real estate there’s a house for everyone. Even if you’ll have to trade your kidneys for a loaf of bread.
One thing’s for sure: with these new FHA loan limits, your real estate fantasy doesn’t have to stay on MTV Cribs— now it can be your real deal reality! And they say miracles don’t happen…
Original article: https://www.inman.com/2023/11/29/fha-2024-loan-limits-are-headed-up-chasing-rising-home-prices/
