FHA Loan Limits Raised to Assist more Buyers

by Coldwell Banker Evergreen Olympic Realty, Inc. on March 5, 2009

Loan limits for FHA loans have been raised back to levels that will make more of a difference in our market area. Loan limits vary county by county. The new loan limits are:

Thurston County $361,250
Grays Harbor County $271,050
Mason County $310,000
Lewis County $271,050
Pierce County $567,500

The limits were reduced by a significant amount at the start of 2009. Thurston County, for example, had a $293,250 limit. Those lower limits certainly took away one of the more popular lending options for a significant segment of the market.

FHA loans are government guaranteed loans that offer a lower down payment than many conventional loan programs. Unlike the subprime loans that contributed to some of the financials problems in the country, the FHA program comes with solid underwriting standards that give assurance to both the lender and borrower that they are on sturdier ground.

By lifting the FHA loan limits back to 2008 levels, more buyers in 2009 will be able to put this great program to work for them. One local lender reported that in 2008, they closed 180% more FHA loans than had been closed in 2007. This represents a good trend as the market moved away from subprime and riskier loans to more solid loans.

If you have questions about the FHA loan program, we’d be happy to refer you to a number of qualified lenders to assist you.

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