In The News
New Mexico FHA Borrowers Gain Most From New Mortgage Regulations
(Albuquerque, NM Feb. 12, 2007) New Mexico mortgage borrowers seeking to take advantage of FHA financing will be getting a windfall from the recently signed Economic Stimulus Act of 2008, according to experts at Charter Mortgage.
Part of the economic stimulus package is meant to bolster the national housing market by increasing the cap on mortgages that the Federal Housing Administration may insure.
That opens up new loan channels for some borrowers, because FHA guidelines allow for loans to be made with down payments of as little as 3 percent, while many conventional loans require larger down payments. Interest rates on FHA-insured loans are also typically lower than on conventional mortgages.
“Prior to this change, many mortgages for homes in Albuquerque and other parts of New Mexico did not qualify for FHA financing, because the loan amounts are too large. In Albuquerque, for example, the cap was at $200,160, and that’s below the price of many homes here,” said Lyle Greenberg, head of mortgage lending at Charter.
“With caps increasing to $271,050 in the Albuquerque area, and to as high as $388,000 in Santa Fe, many more borrowers will become eligible for FHA financing,” Greenberg said.
Greenberg said the housing market is faring much better in New Mexico than in some other parts of the nation and noted that Charter Mortgage recorded its lowest delinquency rates in nine years at the end of 2007. The lender reported an 80 percent increase in mortgage applications in January, over December.
“Now that rates have dropped, a lot of people are refinancing or pulling the trigger on purchases,” Greenberg said. “Now, some borrowers are going to be able to get a mortgage on even better terms if they take advantage of changes in the FHA program.”
