Thursday, October 18, 2007

FHA's Loan Limits Will Not Change for 2008

From one of my favorite lenders, Kristi Collins of Coldwell Banker Home Loans, this tidbit of news:

"The Office of Federal Housing Enterprise Oversight (OFHEO) announced that the conforming loan limit will not be reduced and will remain at a minimum of $417,000 for 2008."

There was some scuttlebut that the FHA would lower their conforming loan limit due to the softening housing market and slipping prices nationwide. I'm sure my new blog buddy Shailesh Ghimire has a great explanation of what FHA means, is and does.

For most FHA buyers in the Phoenix metro region, this isn't earth shattering news. But for FHA buyers in frighteningly expensive markets like Southern California this would have caused some upset. Since it's hard to buy an inhabitable home in SoCal for under the $400k mark (even with recent price slippage) and since the 'conforming loan limit' is the most FHA buyers can borrow, SoCal's buyers could have been facing a grim 2008 if the limit were lowered.

However, it is true that $417,000 won't buy much in certain areas of North Scottsdale. Know what I say? Come on over to North Phoenix. I'll show you scads of neighborhoods where you can get a great pad for under $400k. Plus I know all the traffic shortcuts and detours to get you to work in the morning rush hour in plenty o' time for that dreaded Monday morning meeting.

Cheerio!