Perhaps I have a little good news as it relates to Flagstaff real estate. What's the news? As it pertains to real estate financing, it appears that FHA will keep the former upper limit cap of $729,750.00 for "Conforming" loans in high cost areas. Previously, "Conforming" loans were limited to $417,000.00 with all loans over that amount referred to as "Jumbo" loans. Jumbo loans typically run a percent or so higher. While I don't know specifically how that will affect rates in Flagstaff, my best guess is that Coconino County, of which Flagstaff is a part, will retain the former upper conforming loan limit of $450,000. The ability for lender's and home buyers to obtain conforming (lower interest rate loans) in high cost areas such as Flagstaff, should provide a nice boost to help absorb more real estate inventory. What are your thoughts?
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