By David Baker
Change to financing homes in Maricopa County, including Laveen is coming for buyers using an FHA loan. This will be the second change this year for the FHA which affects buyers.
The first FHA change of the year came in April 2013. The FHA change came in the form of the mortgage insurance premium no longer falling off after 78% loan to value is attained. Prior to April, once your home value reached that 78% of loan to value, it would fall off the loan. The MIP for a home loan of about $193,000 can be about $1700 a year or $141 a month. (This is example, and not exact). So if your loan now does not have the MIP drop off at reaching 78%, and loan is kept for thirty years, one could pay easily over $20,000 to MIP.
The new change now coming takes affect starting January 1st, 2014. The new FHA loan limit in Maricopa County is being reduced to $271,050. This includes a suburbs and cities, including South Phoenix and Laveen. To most in this South Phoenix and Laveen area, this change will not have a major impact, as our area average home price in Laveen stands at $190,000. To other area in Maricopa County, this could have an effect in which loan type a buyer selects.
This second change soley focuses on my area, which is South Phoenix/Laveen or better yet, Maricopa County. Changes are coming for the whole country, so make sure to check for changes in your area.