FHA loan limits for home purchases in the greater Maricopa County area are back up to $346,250 from $271,000 set at the beginning of the year. If you recall, last year’s loan limits were at the $346,250 level.
This is a positive development for everyone given the high concentration of FHA loans in use across the Phoenix real estate market. The drop in FHA loan limits meant that home buyers wanting to purchase a home greater than $271,000 couldn’t use FHA. This was likely to have a dampening effect in the market and put more pricing pressure on home sellers to price even lower to accommodate the lower FHA loan limit.
This should have a good influence on the market for some buyers who were looking for homes in the $271,000 to $346,000 range and desired or needed FHA due to the lower down payment requirement (3.5% down requirement).
For more information on any of this, feel free to contact Gary Miljour at Cherry Creek Mortgage or Patty Immekus at PHX Mortgage, or your particular lender.
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