How Do FHA Loans Work? 2009 FHA Loan Limits is a post from: Arizona Mortgage Team

After learning all about MIP/UFMIP in our first “How do FHA loans work?” series, our second installment covers the FHA loan limits in Arizona. I think that it is fair to say that the new 2009 FHA loan limits in Arizona can be summarized in one word:

Lower.

The FHA loan limits in Arizona for 2009 are:

• Coconino County $333,500
• Maricopa County $271,050
• All Other Counties $271,050

These numbers represent a significant drop from 2008′s $346,250 – and we expect there to be some price adjustments accordingly. If a house was priced at $285,000 in 2008 – I imagine there would be more than one conversation between the seller and their Realtor about dropping the price down to the 2009 FHA loan limit of $271,050.

The 2009 conventional loan limit will remain the same for 2009 – $417,000 in all of Arizona except for Coconino county where it will be $450,000.

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

UPDATE: NEW ARIZONA FHA LOAN LIMITS FOR 2009

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