A little more breathing room for buyers.
Last year I had buyers scrambling to close before December 31st 2008, to take advantage of the $475K FHA loan limit about to expire in Kitsap County. It did expire, but as of February 26th 2009, the President’s Economic Recovery Package has lifted the lid on the limits once again (on January 1st of 2009, it went back down to $307K – a very low limit for those trying to buy a home on Bainbridge).
This is huge for our island, because here, in Kitsap County, we still have to contend with the conforming loan limit, which is stuck at $417K. So, the FHA, has become a popular product here on the island. If you’ve been looking for a house in the $400-600K range on the island, you know that in that range, having an extra $50K to spend on a house can make a huge difference in the quality of what you ultimately buy.
In the Bremerton-Kitsap County area, the FHA limit a one-unit house is $475,000; on a two-unit house is $608,100; on a three-unit house is $735,050; and on a four-unit house is $913,450.
The change in loan limits are applicable to all FHA-insured mortgage loans endorsed after HUD published the increased loan limits on February 26, 2009 and it lasts until December 31, 2009.
For more info on FHA loans or other loan programs like the USDA Rural Loan Program, send me an e-mail.