How drop in home loan limit could affect you

(OCRegister)- Primarily the impact is the result of equity requirements.  The biggest advantage of the higher loan limits is the ability to obtain a mortgage with less than twenty percent equity.  For FHA you can purchase or refinance an existing mortgage to $729,750 with only 3.5% equity in your property (85% equity if you are getting a cash out refinance).  With a conventional mortgage you are able to finance up to 90% for a purchase or refinance and existing mortgage. Read more here…