New FHA loan limits for Phoenix market
Have you heard the good news about the latest changes to the FHA Loan Limits for Phoenix and the Maricopa County area? And if you have, do you know what they mean for the Phoenix real estate market? The good news is you can now borrow more money in 2018 to purchase your next home with an FHA loan than you could in December of 2017.
In 2017 the loan limit on an FHA mortgage in Maricopa County was $279,450. How does that compare to the Phoenix real estate market? Let’s take a look at non-luxury homes, under $750,000. The average sales price for a single-family home in Phoenix was around $290,000. That did not leave a lot of room for an FHA buyer looking to put down the standard 3.5%.
For 2018 the lending limit for FHA loans has been raised from the $279,450 to $294,515.
What does that mean for you as a buyer in the Phoenix market?
If you are an FHA buyer looking to put down 3.5%, you are now looking at houses that are up to $305,000 for a purchase price. This chang needed to be made because of the rising costs of purchasing a house in the Phoenix market.
The new limits now give the FHA buyer flexibility they did not have last month. As an example, as of writing this article, there are 590 more houses you could look at between $290k and $305k. This increase gives you several more options.
Of course with interest rates going up over the last few months, and expected to continue on that route for a while, your buying power may be going down in the future.
Everyone who is shopping for a house in this current market knows the prices are continuing to go up. This is because the supply of houses continues to be very low. This is not the early 2000’s all over again. Demand is fairly normal for the Phoenix market, what we are seeing is normal demand and very low inventory which is causing bidding wars among buyers for the nice houses.
Want to see what the new lending limit increases could mean for you? Below is a list of all the houses currently on the market between $290-305k.