FHA rates are raised for Anne Arundel County

So, here’s the deal:  as part of the new economic stimulus plan, yesterday the FHA has raised the limits on what the loans they’ll guarantee.  You can read more about the story on bankrate.

What this means is in the long run is the following: It is easier for FHA loans to be resold – because they are guaranteed by the government.  Since the limit in Anne Arundel County has been raised to $560,000 for a single-family-home – more people will be able to get FHA guaranteed loans to purchase their homes.  Previously, the FHA limits were too low to mean anything for a lot of people in our area.

This also means that once all of the shake-out is done with these new limits – a lot of loan companies will raise the limit where they’ll consider a loan a jumbo loan, and this could be a reduction in the mortgage rates for higher-priced homes.