The Federal Housing Association sets the FHA loan limits throughout the nation and they can vary depending on socio-economic status of each county.
The FHA loan limits have been $345,000.00 in Washtenaw County.
On October 1st, FHA is lowering the FHA loan limit in Washtenaw County to $271,050.00.
What does lowering the FHA loan limit mean for you?
Well for one it means that the most popular way of financing a home the last 5 years is going to change, for the worst in my opinion. The main reason for the FHA loan popularity was the amount of down payment you need to buy a home in is 3.5%.
According the recent rep0rt of the Ann Arbor Board of Realtors the average home price in the Ann Arbor Area for August was $203,061.00. This is a 4% increase over August 2010.
Homeowners wanting to use an FHA loan will need to pursue other avenues to obtain financing if they want to purchase a home and finance over the new FHA loan limit of $271,050.00.
FHA loan limits not the only way to finance a home
Fannie Mae and Freddie Mac loan limits for Washtenaw County are still capped at $417,000.00
Homeowners that have 20% to put down can also go with a conventional loan.
Before you start looking to purchase a home in Washtenaw County know your options, work with a LOCAL lender, who knows the Ann Arbor, Washtenaw County area.
Call us today and we can help you talk to many good lenders in the Ann Arbor Area. 734-926-9797