Effective October 1, 2011 FHA loan limits will be lowered.
In Cuyahoga, Geauga, Lake, Medina &Lorain counties for instance, for a borrower can borrow up to $298750 single family home today. Effective October 1- the maximum loan amount will be $271050.
Erie, Huron, Sandusky, Ottawa and Wayne counties will remain a maximum loan amount of $271050
Summit and Portage counties will go from a maximum $330,000 loan amount to $271050
This is going to drastically reduce the amount borrowers can borrow on FHA loans. The Conventional 3% down loan will be a good alternative for borrowers with good credit wishing to put the minimum downpayment since the maximum loan amount is $417000 (the conforming loan limit).
To see your county’s maximum FHA loan limit effective October 1, 2011- check out the following link: