Congress did not extend FHA & GSE mortgage loan limits so here in Ada County, our loan limits will drop on October 1st from $303,750 down to $271,050.
If you are looking to buy or sell a property in Ada County (Boise, Eagle, Star, Meridian or Kuna), this will impact the real estate market for all homes priced in this $32,700 range. Here are a few examples of who will be impacted by this:
Buyers: FHA usually alllows for more leanient credit and less down payment than conventional financing, so you may lose out on homes you might have qualified before October 1st! Talk to your lender and your Realtor to make sure they understand how and if this impacts you.
Sellers: If your home is priced between $271,050 and $303,750, this will eliminate the ability to sell your home to buyers using FHA financing. If your home is listed in this price range, make sure your Realtor changes the financing options so you don't misrepresent possible options. Consider dropping the price if possible to stay in the new range. Think of alternate ways to attract buyers if you keep your home listed above $271,050.
Impact: From January 1, 2011 till 9/28/2011, there have been 202 homes sold in Ada County in this price range according to the Intermountain MLS. Of those, 29 used FHA financing which would not have been possible after October 01, 2011.
Keep in mind that each county has different loan limits. You can still buy owner occupied 2-4 famliy properties (duplex, triplex or fourplex). Call to check on those loan limits.
As a Boise Realtor for over 20 years, I realize the only thing constant in this world is change. It is important that your lender and Realtor is actively engaged in the industry so they know abou these types of changes in advance.