The FHA loan limits will be going down in October of 2011. The limits in Maricopa County will be going from $346,250 to $271,050. So what that means as an FHA buyer, if you are planning on spending anywhere between $271,050 up to $346,250 in the Chandler or Phoenix area you better act quickly.
I recently had breakfast with a friend who I consider one of the smartest guys in the real estate industry. He was concerned greatly what effect that this would have on the Phoenix housing market. There are many posts and Tweets flying around right now how this is going to bedevastatingto the housing market, and my friend agreed.
I had Steve Lines of Academy Mortgage run some numbers and check out the stats on these price ranges. Steve’s office did almost 1300 loans in Maricopa in the last year and of those 3.5% were between the price range that will no longer be available in the Chandler and Phoenix area. Besides the Ten Day Close, Academy Mortgage also has another program available which is a conventional loan for only 3% down if you have a credit score of over 720.
Lines checked on those 3.5% and of those, all but 12 would have qualified for this conventional loan program. That means in the last year, only 1% of those who had purchased a home with an FHA loan would not have been able to still make the purchase.
So what effect will the decrease in FHA limits have in Chandler of Phoenix? Hardly any.