FHA is lowering it's mortgage loan limits in 2014. Effective with all FHA case numbers ordered on or after January 1, 2014, the limits will be less than they have been. In Minnesota, there are a couple different areas. If you are buying in the Minneapolis St Paul metro area, the new limit will be $318,550. The old limit was $365,000 so this is a substantial decrease. The metro area includes the following counties: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Ramsey, Scott, Sherburne, Sibley, Washington and Wright. In Cook county, the limit is $282,900. For the remainder of the state, the limit will be $271,050. That includes Rice and Goodhue counties.
If you are currently looking and planning to spend more than these limits, you need to have a purchase agreement written, accepted by the seller and the FHA case number ordered by December 31, 2013.
You can always put more down on a home to get to these limits, but if you are looking at that, you may want to consider a conventional mortgage also.
For those that have a bankruptcy or foreclosure and need to use FHA financing, you will want to pay attention to the new limits. You do need to wait 2 years from the time the bankruptcy was discharged and 3 years from the sheriff sale date on a foreclosure, but at that point you can use FHA financing to purchase again.
Any questions on the new limits, please give me a call or contact your loan officer.