FHA LOAN LIMITS RAISED – FOR METRO PHOENIX AND SCOTTSDALE New FHA Limit is $346,250 for a Purchase Price of $358,808

FHA LOAN LIMITS RAISED – FOR METRO PHOENIX AND SCOTTSDALE New FHA Limit is $346,250 for a Purchase Price of $358,808

Wow, I am totally shocked the congress did something to help the economy and the housing crisis. yesterday The US House of Representatives voted to approve an increase in the FHA loan limits. You have to realize the loam limits have been here for the past 3 or 4 years. They expired in October and dropped to the pre-financial crisis level. For Arizona, or more for Phoenix and Scottsdale they had dropped to $271,050 which would make a purchase price of $280,880.

“ FHA loan limits in metro Phoenix were increased back up to $346,250.“

This is huge. In a market like this we need as much available financing as possible. We want demand for housing, that will help turn the market faster. With the economy we have been in for the past 6 years, people have drained their savings. They also prefer to put less down on a house. Not because they are planning on walking from their mortgage, but because they want the safety net of having the savings.

With the minimum 3.5% down payment at today’s rate of 4%, a 30 year amortizing mortgage payment would be under $2,000 per month. A buyer would need a combined household income of less than $80,000 per year. People in this income bracket can more easily save the $11,000 down payment versus $75,000 needed for 20% down conventional. This brings more buyers to the market.

Did You Know, in today’s market here in Metro Phoenix and Scottsdale we are experiencing:

• Rental rates in most areas are way above the cost to buy with minimum down
• Rates are at all time lows just below 4%
• Inventory of available homes is down 70%
• We are experiencing Bidding wars on homes
• Short Sales are getting approved quickly
• Home values are rising in many neighborhoods

If you are thinking about selling your home and want to find out how to create a bidding war on your home, call me today. Jeff Cameron 480-502-7699 email Jeff@TheCameronTeam.com

If you need help or information on how to avoid foreclosure go to our site here.

 

The U.S. House and Senate yesterday restored FHA loan limits to the level they were at before they were allowed to expire at the end of September. As a result, the limits will rise to 125 percent of the area median home price from 115 Percent, up to a maximum $729,750, from $625,500. NAR estimates that several hundred counties where FHA loan limits fell at the end of September will now rise back up to the previous level.

“The reinstated loan limits will help provide much needed liquidity and stability to communities nationwide as tight credit restrictions continue to prevent some qualified buyers from becoming home owners and the housing market recovery remains fragile,” said NAR President Moe Veissi in a statement released last night.

 

U.S. House Backs FHA Loan-Limit Boost Over Republican Objections
November 18, 2011, 6:20 AM EST
By Phil Mattingly

Nov. 17 (Bloomberg) — The U.S. House of Representatives approved higher limits for mortgages backed by the Federal Housing Administration, bypassing the objections of Republicans who said the increase could threaten the agency’s stability.

Lawmakers voted today for increasing the limit to $729,750 as part of a $182 billion spending bill that included funding for the government through Dec. 16. The legislation, approved in a 298-121 vote, was opposed by 101 members of the House’s Republican majority, some of whom said they opposed the measure primarily because of the loan-limit increase.