FHA loan limits decrease in less than 20 days.  If you are one of those borrowers that has a lower credit score or limited funds to make a down payment, and you plan to borrow over $271,000 using FHA, you need to act quickly.

The FHA’s Office of Single Family Housing announced this week that on January 1, 2014, they will implement new lower loan limits on FHA financing. The previous loan limits were established under the Housing and Economic Recovery Act of 2008 (HERA) and expire at the end of the year.

What does this mean for you?

This will affect us here in Arizona as the loan limits for most of the state, including Maricopa and Pinal Counties (except Coconino County.), will decrease from $346,250 to $271,050 starting with all FHA case numbers assigned on or after January 1, 2014.  

If you  need FHA financing exceeding the new loan limits, your lender must order and obtain a FHA case numbers prior to January 1, 2014.  To get a case number you must have your new home under contract.  Case numbers are property address specific.  Given the up coming holidays, you would be best served to get Pre-Qualified and find a house before December 23rd, 2013.

Need help find a home in the greater Phoenix/Scottsdale area or need lender, please contact me or your current agent.

Loren Hoboy