Comments on: Are Bigger FHA Loan Limits Ahead? http://www.fhaloanpros.com/2009/01/are-bigger-fha-loan-limits-ahead/ The Unofficial Guide to FHA Loans & Mortgages Sat, 21 Nov 2009 08:43:47 +0000 http://wordpress.org/?v=2.6 By: Chandler Real Estate http://www.fhaloanpros.com/2009/01/are-bigger-fha-loan-limits-ahead/#comment-37132 Chandler Real Estate Wed, 14 Jan 2009 15:41:31 +0000 http://www.fhaloanpros.com/?p=867#comment-37132 I'm torn on this issue. On the one hand, I see a benefit to raising conforming limits in our own market in the Phoenix area so as to make some more expensive homes more appealing and also have some impact on custom homes. That's assuming that limits here in the area would get raised when indeed they may not. On the other hand, the limit is high already given that most of our market activity is well in the sub-$350K segment. As well, the challenges with jumbo loans may be one element that is driving pressure for lower prices on homes and in the long-term, I believe that is better for the area. Regarding the tie in to FHA limits, the one area where I believe markets could benefit is to reinstitute down payment assistance but in a more controlled and limited fashion (but without additional cost structures added to the buyer). This would be a temporary measure to spur renewed buyer activity but also address SOME of the concerns that DPA users are less reliable borrowers. Thanks for the post here. David Lorti I’m torn on this issue. On the one hand, I see a benefit to raising conforming limits in our own market in the Phoenix area so as to make some more expensive homes more appealing and also have some impact on custom homes. That’s assuming that limits here in the area would get raised when indeed they may not.

On the other hand, the limit is high already given that most of our market activity is well in the sub-$350K segment. As well, the challenges with jumbo loans may be one element that is driving pressure for lower prices on homes and in the long-term, I believe that is better for the area.

Regarding the tie in to FHA limits, the one area where I believe markets could benefit is to reinstitute down payment assistance but in a more controlled and limited fashion (but without additional cost structures added to the buyer). This would be a temporary measure to spur renewed buyer activity but also address SOME of the concerns that DPA users are less reliable borrowers.

Thanks for the post here. David Lorti

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