On 9/30/2011, the lending limits for Fannie Mae (FNMA), Freddie Mac (FHLMC) and FHA are scheduled to be cut. The idea behind the change is to get federal taxpayers out of the business of subsidizing home sales in high-priced areas. What that means for Key West is that the availability of mortgages for high end homes is going to drop in a few months. That is of course unless some in Congress are successful in their push to extend the limits.
The biggest change in limits will come from the areas that have the highest home values. These are pretty significant drops. There are 88 counties across the country that will see their mortgage limit cut by more than $100,000. In Monroe County, FL the current FHA maximum loan limit of $729,750 (for a single family home) will drop $201,000 (28%) to 528,750. For example: The down payment requirements on an $800,000 home will increase from approximately $70,000 (just under 9%) up dramatically to over $270,000 down (just under 34%.
Well, there's always seller financing?
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