ATTENTION $300,000 TO $400,000 BUYERS AND SELLERS!
TIME SENSITIVE INFORMATION!
The FHA maximum mortgage amount is drastically reducing effective October 1st! The new Twin City Metro FHA maximum mortgage will be $318,550 rather than the current $365,000.
WHY IS THIS IMPORTANT TO BUYERS? Because using an FHA mortgage your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.
Also, FHA has a rehab loan that allows you to buy a home, fix it up, and include all the costs in one loan.
Effective October 1, 2011 buyers looking for a mortgage above $318,550 will have to have significantly higher down payments - possibly as high as 20%.
Jumbo mortgage limits will remain the same at $417,000. Mortgages over $417,000 have higher interest rates.
WHY IS THIS IMPORTANT TO SELLERS? Because there might not be as many buyers qualified to purchase with higher down payments. Regardless of national media, we all know that real estate markets are localized, economic systems with complex factors influencing pricing, inventory and trends. Approximately 6 months inventory of homes indicates a balanced market and that happens to be the case in several Twin City metro communities in the $300,000 to $400,000 price range.
Some sources say that there is a slight chance that the current mortgage maximums will be extended until the end of 2011. Even if that is the case, if you are a buyer or a seller in the $300,000 to $400,000 price range; you should be looking or on the market NOW! Mortgages fully approved by Sept. 30 can close the end of October.