The federal government announced last week that the loan limits will fall in 2014 which will have an impact on entry level homes in Parkland, Florida. FHA Loans, which are popular with first-time homebuyers, are government insured loans that allow for borrowers to purchase homes with low down payments of 3.5% of the purchase price and with lower credit scores.
The maximum loan amount backed by the Federal Housing Administration (FHA) will drop from $423,750 to only $345,000 starting January 1, 2014. According to U.S. Department of Housing and Urban Development (HUD), approximately 650 counties nationwide will see the lower FHA mortgage limits. Originally, the higher limits were apart of the 2008 economic stimulus package which was devised to help the housing market during the Great Recession.
The Effect On Parkland Real Estate?
The impact on the overall Parkland real estate market will be significant mostly in the entry level home sectors in the price range of the $300,000’s to $400,000’s. Buyers will now have to pay more out of pocket in order to continue to purchase homes with FHA mortgages. This will make it more difficult for potential Parkland home buyers, as well as nationwide buyers, to get their loans. Many banks and lending institutions have responded to this announcement by offering 5% down payment loan programs. Unfortunately, many buyers will not be able to afford to purchase a home with this change as they will not be able to afford the larger out-of-pocket funds. Also, with the change, buyers will need higher credit scores to purchase through a conventional mortgage loan, as FHA loan programs allowed for lower credit scores.
For sellers, if you own a home in the $400,000’s or less, you may want to consider to sell your home sooner than later, as this FHA mortgage change will affect the pool of buyers able to purchase your home. This change could also cause entry level Parkland home prices to decrease. If you are thinking about selling your home and am looking for a free comparative market analysis, please give me a call directly at: 954-609-0591.
If you are considering purchasing a home in Parkland, please speak with your mortgage consultant regarding this change, as it may affect your purchasing criteria and loan program. You can also call me if you are thinking about making a move to Parkland or South Florida in 2014 at: 954-609-0591. I can help answer all of your purchasing questions and concerns and direct you to a knowledgeable mortgage lender if you have not already been pre-approved for a mortgage.
Our best marketing is YOU! Please visit our Client Testimonial Page to read more about the experiences of working with our team. Call me for your customized marketing plan and comparative market analysis! Let my full service and aggressive marketing campaign work for you and your family! Please give me a call at: 954-609-0591.
I am a Parkland real estate specialist and Parkland resident. Over the past few years, I have earned the distinction of being one of the top real estate selling and buying agents in the City of Parkland and in West Broward County and a top 1% Nationwide Realtor. I am also proud to announce that I am currently the # 3 RE/MAX Florida agent. If you would like to schedule a buyer or seller meeting with me, please feel free to call me directly at 954-609-0591 or send me a note here.
RECEIVE MY BLOG POSTS DIRECTLY TO YOUR INBOX, SUBSCRIBE HERE!
The Parkland Parrot is also the most comprehensive online source for Parkland real estate information. Whether you are looking for the latest sales, trends or to Search Parkland or South Florida Homes For Sale, The Parkland Parrot has it all at your fingertips.