Starting October 1st, FHA is reducing loan limits varying by county.
In most of the Ohio counties, the maximum loan amounts will be REDUCED to $271,050. This is a huge reduction in purchase power especially in Summit and Portage County, dropping $58,950 from the prior loan limit of $330,000!! Reductions range from $6,450-$27,700 in the other near-by counties (Lorain, Cuyahoga, Medina, etc.), which are also included in the new $271,050 maximum limit.
What does this mean for you as a buyer?
After October 1st, 2011, if you're putting the minimum 3.5% down on their FHA loan, the maximum purchase price for your new home would be $280,880, and the new loan amount would be $271,050. Again, these are the maximum limits. To go with a higher-priced home, a larger down payment would be required to avoid exceeding the FHA maximum loan limit.
If you're considering a home purchase, it's advised that you submit a mortgage application immediately, to take advantage of the prior loan limit. FHA loans must be assigned an FHA case number by September 30th to qualify for the prior limit.
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