Prices of condos in downtown Phoenix and Tempe have come down over the last year, but the market was hurt even more when the FHA lending limits were reduced at the end of 2008.
FHA loan limits on a condo and single family home in Phoenix and Tempe were raised last March from $263,150 to $346,250. That increase from the Federal Government was only temporary though. Towards the end of 2008 the limits reverted back to their prior level of $263K in Maricopa County.
If you have done a search for a condo in downtown Phoenix or around Tempe Lake you know the $263K level is not going to land you to many of the available units. So if you were wanting to use a FHA loan to make your purchase you may have found yourself coming up short, unless you could put down a large down payment. Of course if you could afford that down payment, then you probably were not going for a FHA loan anyways.
During the last week we did receive better news though as the limits have been restored back to the $346,250 limit. So if you were looking for a condo a month ago in downtown Phoenix and Tempe and thought you could not get the unit you desired because of the FHA limits, you may now be in luck. Use our free home search any time or contact me for an automatic search.
