You may recall that back in October, the limits for the amount of money you could finance using an FHA loan to buy a Minneapolis duplex were reduced.
The temporary increases were meant as an incentive for prospective duplex buyers to jump into the market, using FHA’s low down payment requirement of 3.5 percent as an opportunity they wouldn’t otherwise have.
In October, that loan limit dropped for a Minneapolis duplex from $467,250 to $407,800.
What this meant was if you purchased a duplex for more than $422,073 in Hennepin, Ramsey, Dakota, Washington, Anoka, Carver or Scott counties, and planned on using FHA to finance that purchase, you would have to come up with a down payment big enough to cover the difference between a loan amount of $407,800 and the purchase price.
Last week, however, Congress changed their mind, reinstating the higher temporary loan limits. Now, if you purchase a duplex, say, in southwest Minneapolis for more than $483,604, using FHA financing, then you would have to come up with the difference for a down payment.
Otherwise, you can just put 3.5 percent down.
For a triplex, that limit is $564,800, and a four unit loan is limited to $701,900.
It’s important to note that these limits vary by county and state. For example, Goodhue County’s FHA duplex loan limit is $347,000, while many counties in southern California, for example, have a duplex loan limit of $934,200.
These changes happened so recently that HUD has yet to update its web site. However, once they do, you can find FHA loan limits for your area by clicking here.