FHA LOAN LIMITS FOR 2010 – IMPORTANT!!
In February 2009, the Government increased the FHA Loan Limits in the American Recovery and Reinvestment Act of 2009 (ARRA). Those limits are only in effect until December 31, 2009. Today, HUD announced the New FHA Loan Limits for 2010.
The new Maximum FHA Loan Limit in Maricopa County will be LOWERED from $346,250 down to $271,050 for Single Family Residences effective January 2010.
For a majority of the state of Arizona, the FHA loan limits will be as follows:
- One-Unit - $271,050
- Two-Unit - $347,000
- Three-Unit - $419,400
- Four-Unit - $521,250
Loans must be Approved by December 31st in order to use the higher loan amounts before they expire.
What this means is that people that are buying a home in the range between $271,050 and $346.250 will need to pay more money for a down payment, risk paying higher monthly Private Mortgage Insurance premiums if they do not have a 20% down payment , and have potentially higher interest rates based on their credit scores if using Conventional financing. If you are representing a buyer that is looking in this price range it is of the utmost importance that they are aware of this new information. If you are working with a seller they must also understand that this information can greatly reduce the number of people that will be able to buy their home without a substantial amount of money for a down payment.
Ironically, $271,050 (the new limit) is 78.3% of the old limit $346,250.
source: Matt Puzz, Amerifirst