The post Fannie and Freddie Condo Finance Changes appeared first on Arizona Mortgage Lender | The HOUSE Team.
]]>Condo Financing Change – What’s Happening?
To understand the significance of this, you have to know the following: on a condo purchase or refinance, the entire HOA/condo project must obtain approval for buyers to finance a unit in that project. This is regardless of and separate from whether the buyer is approved for their home loan.
On August 3, 2026 Conventional Condo Financing (Fannie Mae and Freddie Mac) will get more complex. Lenders may no longer use the streamlined Limited Condo Review to approve an HOA/Condo project. Going forward on Conventional loans, every HOA/condo project is evaluated using the more rigorous Full Condo Review Process. This is regardless of occupancy and/or down payment. FHA financing still allows spot approvals and there are alternatives to Conventional financing (see below).
Prior to this change, specific down payment and occupancy scenarios allowed the more streamlined Limited Condo Review process. The Limited Review analyzed a fraction of the data Full Condo Reviews look at. This made it simpler for Condo project financing approval via the Limited Review. Going forward, only Full Reviews are allowed.
Why Limited Condo Reviews Are Going Away
First, one reason Limited Reviews are gone is related to the now infamous Surfside condo concerns. These Florida condo’s collapsed killing 8 people in 2021 due to structural flaws. Putting HOA/condo’s through a Full Review on every Conventional loan sniffs out some of these shortcomings whereas a limited review would not.
Also, Fannie Mae and Freddie Mac want a deeper review of the HOA/condo projects financial status. This includes HOA budgets, condo blanket insurance, HOA level litigation and HOA lates. Limited reviews skip much of this data. Over time, ignoring this info led to condo’s foreclosing. This has been a problem for mortgage lenders, Fannie Mae and Freddie Mac. Full Reviews look into all of the info mentioned above. Additionally, they require certain metrics and standards be met. Fannie and Freddie hope this curtails much of the fallout seen with Limited Reviews.
What Does This Mean For Buyers?
These condo financing changes impact buyers and sellers in a few ways. There are other mortgage options besides Conventional (Fannie Mae/Freddie Mac) that may be used to finance a condo (see below). First, here are 3 key changes for buyers and sellers related to the Conventional condo financing changes:
- Some condo projects will not be eligible for financing under a Full Review that would have passed a Limited Review
- Due to the additional information required for a Full Review, condo loans may take longer (HOA’s can be slow pokes – your lender needs to be a condo expert knowing how to move the process along)
- Buyers incur higher fees. The Full Review HOA document package costs more than the Limited Review package. Lenders require buyers pay for the packages up front. Each HOA charges a different amount for an HOA package. However, typical Full Review packages range between $250 and $400. This is slightly more than a Limited Review.
Other Condo Financing Options
Fear not, there are alternative condo financing options. If and when a condo project does not pass a Full Review for a Conventional loan other paths to secure a loan exist. Note – in some cases, the same thing that was an issue for a Full Review may be an issue for one of these other methods as well. Each has different requirements for condo financing eligibility:
- FHA Financing
- VA Financing
- Non QM Financing
- Non Warrantable condo options
- Fannie Mae PERS
- Freddie Mac Green-Par
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]]>The post How To Use Down Payment Assistance appeared first on Arizona Mortgage Lender | The HOUSE Team.
]]>When Does Down Payment Assistance Work Best
Buyers using down payment assistance succeed more in a specific type of market. Markets known as a “buyers market” favor you when your utilizing down payment assistance. Buyer’s markets are exist when the supply of homes for sale is greater than the number of buyers in the market looking to buy.
A buyers market gives leverage to buyers and typically pushes sellers to be more open and negotiable. Why? Simply put, there are less buyers looking to buy so a seller does not have many to choose from. Think of it like selling your car. Imagine you’re selling your car and the market has just 1 buyer for your car. This would be a buyers market because the buyer knows you need them. Therefore, you are in an unfavorable negotiating position and may need to accept a lower offer from the 1 sole buyer. Very different if there were 20 buyers in the market after your car. In that case, you could sit around and wait to take the highest priced offer.
Why Buyer’s Markets Favor Down Payment Assistance
Buyers markets favor DPA buyers for 2 reasons.
Reason 1
Sellers when given the chance typically shy away from accepting offers from down payment assistance buyers. They are seen as more complex loan products with a greater chance of not closing on time or falling apart and not closing at all. When sellers have several offers to pick from, they typically lean toward a stronger appearing offer which might be a cash buyer or one with 20% down.
However, in a buyer’s market the seller may only receive one offer and if that’s a down payment assistance buyer the seller may be forced to accept it due to a lack of options.
Reason 2
Commonly, down payment assistance buyers need help covering both down payment and closing costs. Many down payment assistance programs do not provide enough money to cover both down payment and closing costs. Therefore, these buyers need the seller to help cover closing costs while the down payment assistance covers their down payment.
Again, in buyer’s markets sellers must be more willing to negotiate with buyers as a result of there being few buyers to choose from. As a result, a buyer stands a greater chance of a seller agreeing to paying some or all of their closing cost. However, in a seller’s market sellers are not forced to give concessions to buyers. This makes it difficult for down payment assistance buyers to get their closing costs covered.
In conclusion, any buyer using down payment assistance should jump on the chance to house hunt in a buyer’s market. These markets are rare. For example, in Maricopa County only 4 buyer’s markets have existed in the past 25 years (and we are in one right now).
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]]>The post 2025 Arizona FHA Loan Limit | $546,250 appeared first on Arizona Mortgage Lender | The HOUSE Team.
]]>2025 FHA Max Loan limits increased for Maricopa County Arizona. Additionally, the FHA limits increased for most of the U.S. for 2025 as well. These limits dictate the highest FHA home loan amount a borrower can obtain in a given area. In Maricopa County Arizona, the FHA Max loan in 2025 is $546,250 for a single family 1 unit property. Check out 2025 Conventional Loan Limits.
2025 Arizona FHA Loan Limits by MSA
| MSA Name | State | County | One Unit Max Loan | Two Unit Max Loan | Three Unit Max Loan | Four Unit Max Loan |
|---|---|---|---|---|---|---|
| Non-Metro | Arizona | Apache County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Sierra Vista-Douglas | Arizona | Cochise County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Flagstaff | Arizona | Coconino County | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Payson | Arizona | Gila County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Safford | Arizona | Graham County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Non-Metro | Arizona | Greenlee County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Non-Metro | Arizona | La Paz County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Phoenix-Mesa-Scottsdale | Arizona | Maricopa County | $546,250 | $699,300 | $845,300 | $1,050,500 |
| Lake Havasu City-Kingman | Arizona | Mohave County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Show Low | Arizona | Navajo County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Tucson | Arizona | Pima County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Phoenix-Mesa-Scottsdale | Arizona | Pinal County | $546,250 | $699,300 | $845,300 | $1,050,500 |
| Nogales | Arizona | Santa Cruz County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Prescott | Arizona | Yavapai County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Yuma | Arizona | Yuma County | $524,225 | $671,200 | $811,275 | $1,008,300 |
Click here to search National 2025 FHA Loan Limits
How are FHA Loan Limits Determined?
FHA sets loan limits a bit differently than other home loan products. Instead of establishing a single maximum limit, FHA sets a Floor Limit and a Ceiling Limit for the year. In 2025, those FHA limits are:
- $524,225 FHA Floor
- $1,209,750 FHA Ceiling
Also, instead of pegging all loan limits to County, FHA uses either County OR “Metropolitan Statistical Areas” or “MSA’s“. MSA’s areas are established by the US Office of Management and Budget. Typically, MSA’s consist of 1 to 4 neighboring cities.
“FHA’s Single Family forward mortgage limits are set by Metropolitan Statistical Area (MSA) and county and are published periodically”.
HUD Mortgagee Letter 2023-21
Each MSA in the United States receives a Max FHA Loan limit within the Floor and Ceiling amounts. The Floor and Ceiling amounts listed above are for single family homes in non-high cost MSA’s. Higher FHA limits exist for homes in high cost MSA’s.
The Math Behind FHA Max Loan Limits
Establishing FHA Max loan limits each year is based on local home price trends as well as a few additional factors. Here is how it works:
- Determine “Anchor” Loan Amount
Prior to calculating the 2025 FHA floor and ceiling loan limits, HUD determines an anchor loan amount. HUD/FHA uses the 2024 Conforming Loan Limit set by the FHFA (not to be confused with FHA). The 2025 anchor loan amount is $806,500
- Calculate 2025 Floor Loan Amount
Based on 2 factors HUD calculates FHA’s 2025 Floor Loan Amount. This is the lowest amount that any MSA can have as their Maximum FHA Loan amount for 2025. The 2 factors are:
1. Anchor Loan Amount: $806,500
2. Factor: 65%
The FHA Floor Loan Amount equals the 65% rate multiplied by the anchor loan amount
$806,500 X 65% = $524,225 – FHA 2025 Floor Loan Amount - Calculate 2025 FHA Ceiling Loan Amount
Using the Anchor loan amount along with a higher factor, HUD determines the FHA ceiling loan amount. This is the highest amount that any MSA can have as their Maximum FHA Loan amount for 2025 (except for high cost MSA’s). The 2 factors are:
1. Anchor Loan Amount: $806,500
2. Factor: 150%
The FHA Ceiling Loan Amount equals the 150% rate multiplied by the anchor loan amount $806,500 = $1,209,750 – FHA 2025 Ceiling Loan Amount
After HUD has both the 2025 FHA Floor and Ceiling loan limits established – the framework is set. Each MSA then receives it’s annual FHA Loan Max based on their local average home price and the FHA floor and ceiling limits. See below for a sample calculation.
Finalizing an MSA’s 2025 FHA Loan Max
Each states MSA’s 2025 FHA Loan Limits come from 3 basic criteria. The are as follows:
- Area’s average home price
- FHA Floor Loan Limit
- FHA Ceiling Loan Limit
When an MSA’s average home prices falls within the FHA Floor and Ceiling that average home price becomes it’s 2025 FHA Loan Max. However, when an MSA’s average home price falls outside of either the FHA Floor or Ceiling the appropriate FHA limit becomes that area’s 2025 FHA max loan amount.
For example, areas/MSA’s with average home prices under the $524,225 FHA floor adopt $524,225 as its 2025 FHA Max Loan amount. Similarly, an area where average home prices exceed the $1,209,750 FHA Ceiling (except those noted below) take on $1,209,750 as their 2025 FHA Max Loan amount.
Special FHA Loan Limit Exception Areas
Lastly, Alaska, Hawaii, Guam and the Virgin Islands have their own special and higher 2025 FHA Loan limits. Learn more about high cost Counties on HUD’s site.
“Mortgage limits for the special exception areas of AK, HI, GU and VI are adjusted by FHA to account for higher costs of construction”
HUD Mortgagee Letter 2024-21 (page 4)
2025 FHA Loan Limits are effective for all loans with FHA case numbers assigned on or after January 1, 2025.
Need help with your down payment? Eligible buyers who qualify for a FHA, USDA, VA, or Conventional mortgage may also be eligible for Arizona Down Payment Assistance Programs.
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]]>The post 2025 Arizona Conventional Loan Limit | $806,500 appeared first on Arizona Mortgage Lender | The HOUSE Team.
]]>The most common 2025 Arizona Conventional loan limit is $806,500. This is the max Conventional loan amount for a single family 1 unit home in a non-high cost area). However, different and higher 2025 Conventional loan limits exist for 2, 3 and 4 unit homes in all areas as well as for 1 unit homes located in “high cost areas” of the Country.
Why Arizona Conventional Loan Limits Matter
2025’s Conventional Loan Limit increase to $806,500 continues a 9 year trend. In fact, prior to 2017’s ice breaking loan limit hike, Conventional loan limits stalled at $417,000 (2006 to 2017).
This re-established higher loan amount trend supports healthy Real Estate. In fact, 2025’s $806,500 limit is the strongest signal of that in years. This matters as most consumers do not pay cash for their home AND JUMBO loans are harder to qualify for than Conventional.
According to the National Association of Realtors (NAR) 88% of all recent buyers used a home loan to buy their home. NAR also found that 97% of recent home buyer’s under age 38 mortgaged their home purchase.
88% of recent buyers financed their home purchase. 97% of buyers 38 years and younger financed. 61% of all buyers used conventional loans to finance their home.
National Association of Realtors Research Group, April 2019
Rising home values synced with Conventional loan limits grant more home-buyers greater access to affordable Conventional home loan products. Conventional home loans offer lower down payment options and more flexible underwriting than JUMBO mortgages (JUMBO home loan is a loan greater than the max Conforming Loan Limit for a given area).
Max Conventional Loan Amounts 2000 to 2025
- 2000 – $252,700
- 2001 – $275,000
- 2002 – $300,700
- 2003 – $322,700
- 2004 – $333,700
- 2005 – 359,650
- 2006 – $417,000
- 2007 through 2016 – no change
- 2017 – $424,100
- 2018 – $453,100
- 2019 – $484,350
- 2020 – $510,400
- 2021 – $548,250
- 2022 – $647,200
- 2023 – $726,200
- 2024 – $766,550
- 2025 – $806,500
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]]>The post More Than One VA Loan in Arizona appeared first on Arizona Mortgage Lender | The HOUSE Team.
]]>Veterans Can Have More than One VA Home Loan
Veterans can have 2 VA home loans at the same time. The number of VA loans each veteran may have at the same time is based on the veteran’s remaining entitlement and NOT the number of VA loans under their name.
Many veterans believe they are limited to one VA loan at a time. However, VA is far more flexible in this area and allow for as many simultaneous VA loans as a veterans VA entitlement allows.
Phone: 602.435.2149
Email: Team@JeremyHouse.com
How to Qualify for More than one VA Mortgage
Imagine a veteran has a VA mortgage on a home already. This veteran is then relocated due to receiving new orders to a completely different state. As a result, they want to finance a new primary residence in the new state using their VA mortgage benefits again.
That veteran can tap into their bonus entitlement to finance their new home with a new VA mortgage. Assuming the veteran has sufficient bonus entitlement they would be eligible for a 2nd simultaneous VA mortgage. This is different from how FHA works. Learn more about having multiple FHA loans
Determining Eligibility for Multiple VA Loans
Eligibility for a simultaneous second VA mortgage is based on the veterans remaining entitlement. In order to determine eligibility for a second VA mortgage veterans should work with their mortgage lender. The mortgage lender obtains a copy of the veterans certificate of eligibility or “VA COE”. On that document, the entitlement charged to existing VA mortgages is listed.
Once the lender knows the entitlement charged AND they then find the current maximum conforming loan limit in the area the veteran is buying. Next, they determine the maximum amount for the subsequent and simultaneous VA loan the veteran qualifies for.
Minimum Loan Amount Required with Bonus Entitlement
VA requires a veteran finance a specific minimum loan when using bonus entitlement. In fact, an Arizona mortgage lender cannot originate a mortgage for less than $144,000 for veterans using VA bonus entitlement. Most borrower’s think of a maximum loan amount when they think about getting pre-approved. However, you also need to factor in the minimum $144,000 loan amount with bonus entitlement.
VA Entitlement Restoration vs. VA Bonus Entitlement
So far, we have addressed the a veteran having 2 VA mortgages at the same time or a veteran who has used their basic entitlement up due to foreclosure etc… Veterans that have had VA mortgages in the past but have paid them off will have fully restored their basic entitlement (unless other circumstances exist). A borrower applying for a subsequent Arizona VA mortgage will not need to use bonus entitlement if they do not currently have an existing VA mortgage and they have full basic entitlement.
Phone: 602.435.2149
Email: Team@JeremyHouse.com
Need help with the down payment? Veterans using a VA mortgage may have access to an Arizona down payment assistance program.
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