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Do the new FHA loan limits apply to all “forward” single family mortgages (as distinguished from reverse mortgages)?

April 26, 2017distinguished family FHA limits loan mortgages

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Do the new FHA loan limits apply to all “forward” single family mortgages (as distinguished from reverse mortgages)?

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A. The new FHA loan limits apply to all “forward” single-family mortgages except for Home Equity Conversion Mortgages (HEC Ms), also known as reverse mortgages. HECMs and Hope for Homeowners mortgages have different limits, which is discussed below. Q.6. Does HERA eliminate the existing percentage limitations on financing? A. Yes. It permits financing of up to 100% of the appraised value of the property. Q.7. Can the amount of the mortgage be increased above 100% of the appraised value, by the amount of the mortgage insurance premium? A. No. The maximum amount of mortgage cannot be increased by the amount of the mortgage insurance premium when the principal obligation to be insured equals 100% of the appraised value. The premium can be financed as long as the principal obligation does not exceed 100% of the appraised value. Risk Based Premiums Q.8. Does this new law prohibit risk-based premiums? A. Only temporarily. It prohibits HUD from taking any action to implement or carry out a ri