With delinquencies and debt-to-income ratios on the rise, the Trump administration is lifting foreclosure restrictions and eyeing tighter underwriting for borrowers with multiple risk factors
Popular with 1st-time homebuyers, FHA loans have higher delinquency rates, and borrowers are more likely to end up underwater or in foreclosure when home prices fall
Adjustment for rising home prices increases FHA ceiling in high-cost markets like New York, San Francisco and Washington, D.C., and raises the floor in low-cost markets to $524,225
Annual home price appreciation of 5.5% pushes FHA loan limits up to a minimum of $498,257 in affordable markets and to a ceiling of up to $1.72M in high-cost states like Alaska and Hawaii
Redwood Trust, which issues 'jumbo' loans that are off limits to Fannie and Freddie, said in a new critique that costlier markets are better served by private lenders