FHA loan limits for Maricopa County have gone down from $346,250 to $271,050 as of Oct. 1st . Congress raised the conforming loan limits in 2008 and has extended them annually through 2011, but no action was made to meet the Sept. 30 deadline, therefore, the limits have decreased.
The effect on the marketplace began in August when major lenders stopped approving jumbo loans in anticipation of the decrease in loan limits. With the lower limits, many buyers will now have to put down at least 20 percent compared to the 3.5 percent previously available to them.
Despite the drop in conforming loan limits it is still a good time to purchase a home as rates are still extremely low. According to Freddie Mac, the average on a 30-year fixed mortgage fell to 4.01 percent from 4.09 percent this week.
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