Financing in Memphis>Question Details

kiki, Home Buyer in Memphis, TN

Are the FHA loan limits going to change in Memphis (shelby county) with the new stimulus package?And if

Asked by kiki, Memphis, TN Sat Feb 16, 2008

so, when would it go into effect?

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Yes, the new stimulus package was approved for Memphis and Shelby County to $271,050. i spoke to several lenders to confirm this and they are waiting for the green light, which should be any day. The lift will make the FHA route the way to go for those with little downpayment money, stretched out ratios and reasonable credit.

The Modernization Program is still waiting for approval and that would allow other loan programs to work in conjuction with the FHA loan for downpayment assistance, THDA, etc., to either make the loan with a lower interest rate, funded closing cost (paid closing cost) or partically no money down.

Be sure to get with a Realtor that is well versed in FHA guidelines, contract, inspections, appraisals and addendums. They can lead you through the process with low stress. I have practiced real estate for over 12 years and in the begining of my career, that was all we ever did. The past 5-6 years, conventional loans were more previlent and there are many agents who are unfamiliar on how to navigate through this type of transaction. Many, because of their inexperience might try to discourage any FHA product which in reality can be extremely beneficial in helping a buyer to get the best deal out there.
1 vote Thank Flag Link Wed Feb 20, 2008
FHA llimits are projected to go to $271,000, but we are not sure when, as part of the stimulus package. I anticipate they will go int effect fairly soon. For more information, contact me, and I will get you in touch with a good mortgage person who can assist you.
Web Reference: http://www.spake.com
1 vote Thank Flag Link Sun Feb 17, 2008
I wanted to add to Jo's comment. Due to what's occurring in the mortgage market, a lot of lenders are now implementing minimum credit score requirements for FHA loans - eventhough FHA does not have a score requirement. FYI...
0 votes Thank Flag Link Tue Mar 18, 2008
As of last week Memphis' FHA Stimulus package is $271,050!! Right now there is still a 3% buyer contribution (can be lessened with other programs such as THDA or DPA), however they are working on making is 1 1/2%. This will allow more buyers the opportunity. FHA is geared away from credit scores and more concerned with debt ratio.

Let me know if you need a list of good lenders!!

Jo Shaner
Web Reference: http://www.lipseyshaner.com
0 votes Thank Flag Link Tue Mar 18, 2008
Hey Kiki,

Jo is correct. I was wrong - I only knew of the increase in the high-cost areas. I did contact HUD regarding the timeline and this is an excerpt from their email response, "With the new ruling, they will be revising the limits. When that will be complete and will take effect we do not know. "
0 votes Thank Flag Link Wed Feb 20, 2008
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