Reduced FHA loan limits in Arizona as of October 1, 2011?
Unless subsequent regulation is passed to further extend the temporary loan limits, the temporary high balance loan limits defined by the American Recovery and Reinvestment Act of 2009 (ARRA) will expire on September 30, 2011. This is generally being viewed as going by the NOTE DATE – loans with a NOTE DATE on or after 10/1/11 must use the lower limits.
Each investor may make different rules that may require an earlier funding or lock date or a final delivery date. Please be advised that any applications for a loan amount between $271,050 and $316,250 (in Pima County) will need to lock, close and fund BEFORE 9/30/11 to be safe. This is not based on CASE NUMBER ASSIGNMENT DATE!
ALL OF ARIZONA WILL BE AT THE FLOOR LIMIT OF $271,050 except Cococino County which is $333,500
To further complicate matters the current floor of $271,050 may go down at the end of the year. BTW – The $271,050 is based on 65% of the Conforming loan limit from before 2009. This year the conforming loan amount is subject to change and just like every year before 2008 will go up or down based the median home price in the US. If I was to bet on this I would have to say they will likely go down. The conforming limit of $417,000 may be extended further but no one knows.
Call Todd Abelson at Sunstreet Mortgage for all your financing needs! (520) 331-LEND