FHA loan limits, and smart homes

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Real Estate

The FHA loan limits have been adjusted for the new year! We know that the housing market is a tricky thing, so we wanted to break down the Federal Housing Administration loan limit for you.

You might not have heard about it, but the loan limits for those who are buying a home with an FHA loan are going up--and we’re talking about a pretty substantial increase.

Effective January 1, 2023, the FHA national loan limit, or floor, will increase from $420,680 to $472,030 for single-family home loans. That’s about a 12.21% increase over 2022’s limits. 

The FHA’s loan limit is set at 65% of the national conforming loan limit of $726,200.

In about 65 high-cost areas of the country, where 115% of the median home price is greater than the floor, the FHA’s loan limit ceiling will increase even more--from $970,800 to $1,089,300. These high-cost areas are places where 115% of the median home price is greater than the floor (that is, $472,030).

The maximum loan limits for FHA forward mortgages will rise in 3222 counties.

So, what's the deal with the FHA loan limit? 

The FHA loan limit is a tool that helps ensure that buyers in high-cost areas have a fair chance at securing a loan that can help them get into an expensive market. The FHA sets this limit each year based on current sales data for the area in which you are buying a home. The more expensive the average home, the higher your loan limit.

As always with these changes, it's important to check with your lender before applying so you can be sure you're within these new guidelines.

What does this mean for buyers? 

It means that if you're in one of these high-cost areas and looking to buy a house in 2023 or later then your chances of getting a mortgage at affordable rates just got much better!


What Will Smart Homes Look Like 10 Years From Now?

Let's start with what a smart home can do for you. Well, first off, you can control everything from your phone—or even from your watch! So if you want to turn on the lights or just change the temperature, no problem! You can do all of that remotely. And then there's voice control—you can tell the house what to do and it will follow your instructions.

And a lot of these smart homes are also connected to the internet so they can talk to other devices around them. So if there's something wrong with one part of your house—like if it smells bad—then other parts (like air filters) will know about it and fix themselves automatically.

And then there are sensors that are built into these houses so they know about when people come over and when they leave; they know if someone's home or not; they even know if someone is feeling sick! 

And it's not just for convenience—these devices are also designed to make our lives easier and safer. They can monitor our surroundings for us so that we don't have to worry about leaving the house unattended anymore, and avoid being robbed. The smart home can even remind us when we need to take medicine or schedule doctor's appointments!

Now, let's talk about security. You'll be able to unlock your front door with your phone or even just by walking up to it. This makes it harder for criminals to break into your home without setting off an alarm. This kind of technology will also allow you to connect your garage door so that if anyone tries breaking into it while you're away from home, they'll automatically get caught on camera and recorded as evidence against them.

Next up: appliances! These days we have refrigerators that tell us when our food has gone bad so we can throw it out before it goes bad; but what if our refrigerator could tell us when something else needs replacement? 

So what does this mean for the future of smart homes? Well… we don't know yet! But here are some things I think could happen:

1) We'll see more virtual assistants in our homes (like Alexa). These assistants will help us keep track of our schedules and help us organize our lives better than ever before.

2) We'll see more sensors and cameras in our homes—not just for security reasons but also for keeping tabs on things like temperature or air quality. This will help us make sure we're living in safe environments where everyone feels comfortable and secure at all times. What is your vision of smart homes ten years from now? Let me know in the comments. The best comment will be highlighted next week.