When FHA limits go down, so may prices.

For years Orange County buyers have benefitted by the ‘temporary’ high FHA loan limits offered.  Home loans up to $729K were eligible for FHA financing.  This benefitted buyers because they could purchase a good size home with less money down, lower FICO scores and higher debt ratios. 

It looks like those days are coming to an end.  Come September 30th, the limits will return to $625,000.  If you are looking to purchase a home in the higher 600’s and greater, you will want to do it ASAP or you may lose your ability to do so.  Also if you are looking to sell your home this summer, you will want to put it on the market ASAP, so you don’t exclude a huge group of potential buyers and have to lower your home’s price unnecessarily or into the FHA price range to get it sold.  Homes in the high 600’s and higher often take 4-5 months to sell, so a summer sale should begin in April.  Call me to see how this might apply to your situation.

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