Wednesday, February 25, 2009

FHA Loan Limits Increased for Maricopa County

Just got word from one of my fave lenders, Kristi Collins of Maricopa Mortgage (602-750-8594) that the FHA loan limits for Maricopa County have been raised, back to 2008 levels.

Buyers in Maricopa county using an FHA loan can now purchase a home with a maximum loan amount of $346,250 (single family homes).

The FHA home mortgage program was introduced during the Great Depression, and today FHA primarily serves people who cannot afford a conventional down payment. These are typically first time home buyers (but if you owned a home before, you're not necessarily out of the running for an FHA loan).

FHA loans require only a 3.5% down payment. PMI (private mortgage insurance) is required on these mortgages, and will add about $50 or so per month to the borrower's payment.

For more information, see The Phoenix Agents' past reporting on FHA loans here.