Inside FHA County Loan Limits: Should You Buy a Home Now?

FHA county loan limits determine the size of FHA-insured loan you get secure in a particular area. The limits are set each year, and they depend on the type of home you are purchasing. For example, a single family or a multifamily residential home will have different limits. You can find your FHA county loan limits by asking your FHA approved lender or through online resources like the Fannie Mae or Freddy Mac site. Even if your county limits are high, though, a new home may not be the right decision at this time.

Why Buy a Home Now with an FHA Loan

FHA home loans allow first-time home buyers or those with small down payments to secure loans easily. It can be difficult to get a mortgage with a low, or especially no, down payment without going through an FHA lender.

FHA home loans are typically fixed-rate mortgages. Unlike the rates for a sub prime mortgage, rates for FHA loans will not go up in the years to come. Fixed-rate mortgages protect you from skyrocketing monthly payments down the road.

FHA lenders may work with those with less than perfect credit. Getting a mortgage at a low interest rate can be near impossible for people with bad credit. If you have bad credit, ou will need to meet certain minimum requirements, which could include at least 2 year's distance from any bankruptcy and longer from any foreclosure.

There are no prepayment penalties with most FHA loans. If you pay off your mortgage early down the line, you can walk away with a clean start.

The government is implementing several stimulus packages to get people in homes. Lenders are more willing to work with you today than they were one year ago. So are sellers.

Why Wait to Buy a Home

If you are looking to make a profit on home ownership, you will have to work harder than ever. You home's value is not likely to see fast appreciation. Purchasing a "fixer upper" or putting in major repairs will be the only way to see returns on a home in the short term.

You need to be financially secure enough to commit to a new mortgage. Typically, this means that you have been with the same employer for at least two years. It also means your emergency fund should hold at least three-month's pay.

If you are planning on moving out of the home within a short time period, you will probably not be able to build equity quickly. As the market creeps along, homeowners will not find the same security in their financial prowess. Your home should be a long-term investment. If you are a student or are buying a "starter home," it may be better to wait.