At the risk of becoming the Duplex Chick who cried “wolf”, FHA loan limits on Minneapolis and St Paul duplexes are about to change. A lot.
It’s important to remember that the amount of the loan you’re allowed to obtain is determined by where you live.
So, if you’re buying a duplex in Los Angeles or New York, you’re loan limit is likely to be higher than someone buying a duplex in, say, Mankato, Minn.
As of October 1, the five major counties that comprise the Twin Cities will see their FHA insured loan limit on a duplex drop from $467.250, to an amount no greater than $407,800.
Triplex buyers will see their limit decrease from $564,800 to $492, 950.
And those who hope to put just 3.5 percent down on an owner occupied FHA insured four-plex will find the maximum amount they can finance drop from $701,900 to $612,600.
While only a handful of duplexes, triplexes and four-plexes have sold this year for amounts too high for the property to qualify, these figures are important to keep in mind if you’re planning on owner occupying a duplex.
After all, sooner or later, somebody’s bound to have their heart broken by these new restrictions.
Most likely, however, it’s going to be the single family home buyers who will see their outer limits shrink from $365,000 to $318,500.
Of course, there’s always the possibility Congress can intervene and extend the higher FHA ceiling in order to help stimulate the housing market.
But that would require them all agreeing on something.