Real Estate Blog

Hello:

We had some big news from the HUD regarding FHA loan limits.  As of January 1, 2009, the amount of money that can be borrowed under an FHA loan will be lower than it is currently.  If you're looking for a home right now, this could affect you.  Talk to your lender right away. 

In lower cost areas, the limit will now be $271,050, which applies to Maricopa County.  In higher cost areas, the limit will be $625,500.  This amount doesn't apply to us here in the Phoenix area, but I wanted to mention it in case I have any readers who plan to buy a home elsewhere.  These limits apply only to single-family units. 

Back in February 2008, the FHA limits were temporarily raised to try to stimulate the housing market. Now, those limits will be going down. I'm hoing this doesn't hurt the market.  So, for anyone currently looking for a home who is planning to use an FHA mortgage, please be aware of this new limit and if you're price range is above this limit, you might want to step up your efforts and try to close on your home before end of the year.

The other big announcement is that the $700 billion bail out will not be used to purchase troubled assets. What does this mean for the housing market? Not quite sure anyone really knows yet.  Stay tuned . . . .