HUD announced in December that FHA mortgage loan limits will increase for all Indiana counties. In 2018 the loan limits ranged from $294,515-322,000. Corresponding limits in the new year will run from $314,827-343,850. FHA mortgage loans are insured by the federal government. In most cases, they require a minimum cash down payment of 3.5% of the purchase price (ie. A house selling for $100,000 would require a cash down payment of $3500). The urban rumor mill has it that these are for first time home buyers only. That would be wrong!  They are available to most anyone, regardless of income or whether you’re a first time buyer or it’s your seventh house. However, generally you can have only one outstanding FHA loan at a time, and they are for primary residence only. You cannot buy a rental property with a FHA loan— (drum roll) you can buy a 2-4 unit property with a FHA loan if you are going to live in one of the units! And even in that case, the down payment is only 3.5%! Talk about a way to get started in real estate!! Want to know the loan limit in your area? Call the experts at Indy’s Choice today.
