No. of Recommendations: 0
I think you are correct. There is a maximum amount of mortgage you can get under FHA. It's been increased so many times, I can't remember what the upper limit is anymore, but that doesn't matter because she's looking at houses under $120K, I think.

The problem with FHA is (the last time I got an FHA loan) the lender rolled some of the costs into the loan so I ended up owing more than the principal balance. It had something to do with the MMI, I believe. I don't do a lot of FHA loans; but they're cost effective for first-time homebuyers. I think this buyer can do a lot better with state/county fund programs since there are so many low-interest and no-down payment programs available outside of FHA.

Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.