FHA loan limits in Fall of 2011 and bounced around a bit.  FHA announced in September the FHA loan limit would be $271,050 through December 31, 2012.  Shortly after that (early December) they decided that they would revert to the maximum loan limits previously in effect to October 1, 2011, which is $303,750 in Ada and Canyon County.  So for FHA loans with Case Numbers Assigned on or after November 18, 2011, FHA has reverted to the maximum loan limits previously in effect to October 1, 2011 ($303,750).  If you had a case number assigned between October 1, 2011 and November 18, 2011 they must use the lower limit of $271,050.

FHA loans are utilized by many buyers because they allow a lower credit score plus a lower percent down payment compared with a conventional loan.  If you qualify for a FHA loan, you can pay as little as 3.5% down on a home.

FHA allows a score as low as 580 but because FHA doesn’t actually give out the loan themselves (they are given through approved FHA lenders), most lenders require a minimum score of 620.  Sometimes there are exceptions too.  You should talk to your lender for more information.

FHA Website:  http://www.fha.com/fha_loan_requirements.cfm

Please let me know if you need the name of a knowledgeable lender.  I have several names I could give to you.

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How do derogatory credit events affect your future home purchases? That answer has been difficult to pinpoint. With the number of short sales, bankruptcies, and foreclosures that have occurred in the past couple of years, the answer seemed to change too. I asked Jason Ames with Waterstone Mortgage Corporation what they are seeing right NOW on the effects of derogatory events. Of course the answer always is, “it depends”. It depends on if in the future you are seeking a conventional loan, FHA loan, VA loan, or USDA loan. Conventional loans can have as little as a 2 year waiting period after a short sale. That’s good news because a year ago, we were being told a little different story. I have attached a document from Jason, that gives you a lot more detail on what the current guidelines are: 

Waiting Periods for Derogatory Credit Events

The most important thing after a derogatory event is to re-build your credit.  Call your lender for ideas that will help you establish good credit again after you experience a significant credit event.  With a little patience, you can be back in your OWN home soon!