2011 Temporary FHA Loan Limits About to expire in many counties in Arizona. This affects many buyers throughout the US looking to purchase for 3.5%. If you live in Maricopa County, AZ and are using an FHA loan to purchase a new home, be aware that the loan limit which was $346,250 will decrease to $271,050.
Congress has not acted to extend the temporary FHA maximum loan limits. If they take no last-minute action, on October 1, 2011 the current loan limits will expire and revert to the standard FHA loan limits set back in 2009 ($271,050). For many counties in AZ, i.e. Phoenix Arizona this means a max FHA loan of only $271,050.
You will need to submit your FHA loan applications BEFORE September 15, 2011 IF the loan amounts exceed $271,050 AND the property is located within Maricopa County/ Phoenix Arizona. The FHA max loan amount varies by county, so check with a loan officer in the area where you are purchasing if you are concerned about how the expiration of the temporary FHA loan limits will affect other counties in Arizona and across the nation.
Please refer to the following HUD link for loan limits in your area: https://entp.hud.gov/idapp/html/hicostlook.cfm
Other temporary loan limits on conventional programs are also set to expire, although these mostly affect more expensive markets/areas within the country. Phoenix is not considered a "high cost" market but an area like Los Angeles, San Francisco or New York City would be. Ultimately, borrowers using FHA loans to financing a purchase may have substantially less buying power than previously and will need to adjust their plans accordingly.