New Arizona FHA Loan Limits

As a result of the stimulus package passing, there are now new Arizona FHA loan limits.  If you have been in the market for a home that was priced above $260,000 this is great news because you now can get into a low 30 year fixed rate mortgage that is insured by FHA for up to the new FHA loan limits.

FHA loan limits vary by county and are usually updated annually. In fact, for the “regular” update for 2009, FHA loan limits actually went down – but with the passage of the stimulus package, they have now went back up to the same loan limits as they were in 2008.

5 Advantages To FHA Loans

1. Usually, the 30 year fixed rate for an FHA loan is lower than conventional loans (usually!)
2. FHA loans never have a prepay penalty
3. Qualifying guidelines are less restrictive than other loan types – for example, you can have a 620 credit score and still possibly qualify for an FHA loan
4. The down payment requirement of 3.5 is lower than the conventional down payment requirement of 5%
5. If you currently have an FHA mortgage, if interest rates drop, you can participate in the FHA streamline program and take advantage of lower rates without having to fully re-qualify for a new loan.

See HUD’s official mortgagee letter outlining 2009 FHA loan limits.

FHA RAISES THE LOAN LIMITS – EFFECTIVE FEBRUARY 25,2009