New 2009 guidelines were recently released by FHA, Fannie and Freddie. Some things you should make note of include:
- In all AZ counties the FHA loan limit has been reduced to $271,050 with the exception of Coconino which will be $333,500. This is down from the 2008 limit in Maricopa and Pinal counties of $346,250.
- Fannie and Freddie have announced that they will leave the conforming loan limits at the current $417,000 (for all counties in AZ except Coconino which is at $450,000). In other high cost areas (San Diego & Orange County and such) it will be $625,000.
- Freddie Mac has also announced that effective 2/2/09 they will no longer purchase loans with stated income/stated assets. Lenders will implement the changes earlier than this date to insure a smooth transition. Maximum debt to income will be 45%.
What does this mean?
Better yet, where’s your opportunity?
This all means that anyone considering purchasing a home that would fall in the $271,050-$346,520 range should be looking at doing that now if you’d like to take advantage of an FHA loan. With a low initial investment of 3% and historically low interest rates combined with a discount buyer’s market, what’s holding you back?
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