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.
Showing posts with label loan limits. Show all posts
Showing posts with label loan limits. Show all posts
Tuesday, September 27, 2011
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