New this year for 2014, the Federal Housing Administration (FHA) has lowered their loan limits on FHA backed mortgage programs. These cuts are in place throughout most parts of the country including significant decreases in the Las Vegas area.
Limits were released in December by the Department of Housing and Urban Development (HUD). Here in Clark County, our limit is now set at $287,500 for a single family residence (SFR) which is a big drop from the $400,000 range we held steady for quite some time.
This news came as a surprise to everybody in Southern Nevada and had many people wondering how this would impact the local housing recovery. From my own experience and interactions, I see that housing market is still going strong.
Surprisingly, before the limit change, FHA loans hadn’t accounted for a big portion of closed real estate transactions. There are still tons of homes on the market that are well within the new limits. Many transactions can be closed with a number of home loans which now offer down payments as low as 5% which is easier to obtain than the traditional 20% down that most people are used to.
I have established great relationships with lenders who offer these type of programs on top of FHA, military VA loans, jumbo loans and much more. It seems like there are always new guidelines coming out in favor of both home buyers and sellers.