New FHA Loan Limits for Pima County
The news today from FHA is that loan limits were raised, potentially making financing a tad easier for some folks.
FHA is the Federal Housing Administration, a governmental body that basically insures loans. FHA loans, in the past, had some stigma attached to them, because of the low amount of down payment needed. They were considered loans for first time buyers, or other folks who couldn’t get a down payment together.
This has changed over the years. FHA financing has come a long way, baby.
Before today, in Pima County, you could only get an FHA loan for up to roughly $239,000. This is well below the average sales price in Tucson for a single family home! Today, new temporary loan limits were announced: for Pima county, for a single unit, FHA limits are at $316,250. This is good. FHA buyers can now use that financing to afford the typical Tucson home.
Sweet thing about FHA is that they only require 3% down, whereas conventional loans currently require 10% in Pima county.
From Mary Maza-Abihai of Long Mortgage on today’s new FHA limits:
For the first time since November 2004, the FHA floor limits will temporarily increase on Friday, March 7, for one-and two-unit properties. Floor limits are the maximum loan amount allowed in a specific county area. Floor limits are also known as the base loan amount.
Pima County has increased the maximum base loan amount to $316,250.
This should have a huge buyer impact. FHA minimum required down payment is 3% of Sales Price. The 3% can be a gift.
With changes daily to our market and lending guidelines, Conventional loan financing in Pima County requires a 10% down payment. 5% must be the borrowers own funds.
FHA has typically been know as a first time home buyers product. This change should allow for more home buyers, first time or not, to purchase in this current market.
Questions? Go to the money source. You can call Mary at (520) 918-1634 or email her: marym@longmortgage.com.
