FHA Loan Limits Looking to Decrease

HUD is planning another shift in loan limits for FHA loans coming this October.  Currently they are set at $295,000 for  our Marion & Polk Counties within the Mid Willamette Valley in Oregon.  Currently FHA requires a down payment of 3.5% of the sales price leaving a potential sales price to be no more than $280,880.00 come this October.  Hopefully this will not have a huge affect on our home sales in this area.  Many of the FHA buyers in this market are purchasing homes below $200,000.  However, you will see that many move up buyers want to take advantage of the FHA backed mortgages with the minimal 3.5% down payment leaving some sellers with homes priced around the $280,000 price range and above in an ever more difficult position to find a qualified buyer.

Like most markets around the country, ours is also flooded with homes priced above $280,000 and it is a difficult task to find a buyer able to put down 20% during these economic times.  Sellers need to look ahead so they are able to position themselves correctly for the coming changes.