This December HUD confirmed that the 2012 FHA Mortgage Limits have been restored to the higher temporary loan limits effective November 18, 2011 through December 31, 2012. On October 1st, the loan limits had rolled back to regular numbers, which for Kitsap County meant a drastic drop from $475,000 to $307,000.
This is great news for buyers wishing to purchase a home in 2012 without putting down 10 or 20%. The minimum down payment for an FHA loan is 3.5%. Prior to this re-increase in loan limits, the threshold was $307,000 for a loan. A huge difference for Bainbridge Island, where the average sales price of a home is $575,000. The $307,000 loan limit made purchasing a home with an FHA Loan very challenging to say the least.
The new limits are exactly what we need here on Bainbridge Island to keep the real estate market healthy and active.
At the time of this posting, FHA rates are hovering around 4% with zero points. For a great lender recommendation for your FHA loan, visit my Buying Page.