Revised FHA Limits for Issaquah Homes and Condos

Several months ago, the United States Senate and House voted to lower Federal Housing Administration (FHA) loan limits to $625,000 across the country. The change effected 669 counties in 42 states and territories, with an average loan limit reduction of more than $68,000. For the Issaquah and Sammamish area this could have impacted the sale of 72 homes in Sammamish and 36 in Issaquah which were listed above $700,000. However, in a compromise vote last week, Congress voted to restore the higher original limits for FHA but retain Fannie Mae and Freddie Mac at 115 percent of local area median home prices, up to $625,500.MP900399693 150x150 Revised FHA Limits for Issaquah Homes and Condos

The new FHA bill reinstates the higher FHA loan limits through 2013 at 125 percent of local area median home prices. Some maximums are as high as $729,750 in the highest cost markets. The rise in FHA guaranteed loan limits does not just effect higher wage earners. According to FHA data from 2010, the FHA was used by 56 percent of all first-time homebuyers while 85 percent of borrowers obtaining homes at the higher loan limits had incomes below $150,000, and nearly 65 percent had incomes less than $100,000.

The NAR (National Association of Realtors® was quoted as saying, “As the nation’s leading advocate for homeownership, we applaud members of Congress for restoring FHA’s previous loan limits, which will help reduce consumer cost burdens, stabilize local housing markets and allow qualified, creditworthy borrowers to access affordable mortgage financing. The reinstated loan limits will help provide much needed liquidity and stability to communities nationwide.”

Danny Evatt is a REALTOR® and Broker with Windermere, serving the communities of Issaquah, Sammamish and Snoqualmie, Washington. The statements and opinions expressed herein are his own.

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Danny Evatt, REALTOR® is a Real Estate Agent with Coldwell Banker Danforth, serving the communities of Issaquah, Sammamish, Snoqualmie, North Bend & Fall City.

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