Chicago Metro Area home buyers looking to take advantage of 3.5% FHA (Federal Housing Administration) financing for homes priced between $278,000 and $420,500 must close their home purchases by December 31st.
With the current $410,000 FHA loan limit, buyers can have a down payment as low as 3.5% which would let them purchase a home priced up to $420,500. On January 1, 2010 the maximum FHA loan limit for FHA loans plummets from $410,000 to $271,050. The new loan limit of $271,050 with a 3.5% down payment will limit buyers to homes priced $278,000 or less. To use FHA financing and purchase a home priced above $278,000 buyers will have to provide a higher down payment to make up the difference.
Without FHA financing home buyers need a down payment of at least 5% to 10% of the home’s sale price depending on their credit and other qualifying factors.
I highly recommend that home buyers wanting to take advantage of 3.5% down payment FHA financing for homes priced between $278,000 and $420,500 have a contract on a home purchase by November 1st to minimize the risk of their home purchase not closing by the December 31st deadline. That means such buyers need to be looking at homes during the next 3 weeks! Contact me to get started now!
ABOUT THE AUTHOR
Fran Bailey shows, previews and tracks downtown Chicago homes for sale giving her the insights needed to help her clients negotiate the best price and terms. Fran has been quoted in numerous Chicago and national publications. To schedule showings of listings regardless of broker or to contact Fran email her at fran.bailey@bairdwarner.com or call 773.793.4516. Learn More
Fran Bailey, Realtor
