If Congress doesn’t act soon the close of September won’t just signal the end of summer, it will also signal the end of the Federal Housing Administration’s current loan limits. As things stand, the current loan limits will revert to previous limits on Sept. 30.
FHA plays a critical role in the nation’s housing financing system, providing safe, affordable mortgage financing to consumers in all markets during all economic conditions. Decreasing FHA loan limits will have an immediate negative impact on mortgage liquidity for many markets across the country – and not just in high-cost areas.
Fewer people would have access to mortgage loans, and the loans that are available would be more expensive. Home owners could also have a tougher time selling their home because there would be fewer who qualify to purchase.
Examining the impact… NAR estimates that reverting to lower loan limits on October 1 will impact 669 counties in 42 states and the District of Columbia, with an average loan limit reduction of more than $50,000. Ask a Realtor® about what this means for local buyers and sellers. To find out if your county will be affected, visit www.realtor.org/fha