Clark County, NV FHA Loan Limits Decrease By $128,950 On Oct.1, 2011.

Important Announcement – If you are considering securing FHA 3.5% down financing for a home in Clark County (Las Vegas, Henderson, North Las Vegas, Boulder City), you have until October 1, 2011 fund on your loan before the loan limits drop from $400,000 to $271,050.

What this basically means is that the alternative to FHA Mortgage Loans is finding a Conventional Mortgage, which may require a much larger down payment (up to 20%), as well as higher credit scores and income requirements.

Quick Background:

When Congress passed the Economic Stimulus Act in 2008, FHA loan limits were temporarily raised to help borrowers in higher cost areas obtain financing through FHA to help offset the reduction in private financing due to the credit crunch. These Loan Limit increases were substantial in many areas of the country and were set to expire in the future. ( I wonder if Congress knew we’d have a housing bubble )

Congress passed additional legislation to extend these loan limits for the past couple of years. However, barring any Congressional action, the FHA Loan Limits are set to revert to the 2008 formula as of October 1, 2011.

Clark County FHA Loan Limits / Proposed Changes:

Number of Units in property: 1 Unit 2 Units 3 Units 4 Units
Current FHA Loan Limits: 400,000 512,050 618,950 769,250
Proposed FHA Loan Limits (Oct.1, 2011): 271,050 347,000 419,425 521,250
Reduction Amount: (128,950) (165,050) (199,525) (248,000)

* Sources: Search FHA Loan Limits | May 26, 2011 – FHA Loan Limit Brief

How Will This Impact Buyers?

A few of the major benefits of an FHA Mortgage Programs:

  • Liberal Credit Requirements (580-640 Fico Scores May Work)
  • Lower Rates (Not hit with rate increases due to lower FICO scores – LLPA)
  • 3.5% Downpayment

While there is mortgage money available… for now, Section 941 of the Dodd-Frank Act pertaining to risk retention and the Act’s definition of qualified residential mortgages (QRMs) could make it very challenging for many First-Time Home Buyers to get a loan. (Video: “Skin In The Game)

However, the difference in downpayment and higher rates may actually force the sellers who have their properties listed in the low $300,000 range to drop their prices just to compete for the FHA borrowers.

Not sure, but this theory makes sense to me, especially if we’re talking about Las Vegas Short Sales and REO’s where the banks will need to price their listings according to accurate market comps.

Buy now, or wait for the FHA loan limits to decrease, along with property values?

Tough question to answer if you’re only concerned with value, equity and other “investment” related topics that probably shouldn’t be mixed with the decision to purchase a primary residence.

And if you’re a cash investor, then this FHA loan limit decision probably won’t impact the homes in your price range of Las Vegas real estate investment deals under $145,000.

Keep in mind that 51% of residential properties purchased in Clark County last month were paid for in cash, and not secured by a mortgage loan.

Either way, the following map and list of homes for sale in Las Vegas and Henderson may give you an idea of what you could miss out on once the FHA Loan Limits in Clark County decrease.

The two main questions to ask yourself area whether you would rather pay 3.5% or 20% down, and if you’re willing to risk getting a higher rate by waiting until after October 1 to see what the market does.

* This list updates every day from the “ACTIVE” listings in the MLS. Once a property goes into contract or “Pending” status, it is automatically removed from this list and map.

  1. 4 beds, 3 baths
    Home size: 2,311 sq ft
    Lot size: 4,356 sqft
    Year built: 2004
    Days on market: 0
  2. 3 beds, 2 baths
    Home size: 2,118 sq ft
    Lot size: 6,534 sqft
    Year built: 1999
    Days on market: 1
  3. 3 beds, 2 baths
    Home size: 1,925 sq ft
    Lot size: 5,227 sqft
    Year built: 2005
    Days on market: 1
  4. 4 beds, 3 baths
    Home size: 1,964 sq ft
    Lot size: 5,227 sqft
    Year built: 2009
    Days on market: 1
  5. 3 beds, 3 baths
    Home size: 2,824 sq ft
    Lot size: 5,662 sqft
    Year built: 2013
    Days on market: 1
  6. 3 beds, 3 baths
    Home size: 2,441 sq ft
    Lot size: 5,662 sqft
    Year built: 2017
    Days on market: 1
  7. 4 beds, 3 baths
    Home size: 2,355 sq ft
    Lot size: 7,405 sqft
    Year built: 2013
    Days on market: 1
  8. 4 beds, 4 baths
    Home size: 2,522 sq ft
    Lot size: 5,662 sqft
    Year built: 2005
    Days on market: 1
  9. 3 beds, 2 baths
    Home size: 1,917 sq ft
    Lot size: 4,356 sqft
    Year built: 2008
    Days on market: 1
  10. 5 beds, 3 baths
    Home size: 2,477 sq ft
    Lot size: 6,534 sqft
    Year built: 2012
    Days on market: 1
  11. 1 bed, 2 baths
    Home size: 1,220 sq ft
    Year built: 2006
    Days on market: 1
  12. 3 beds, 3 baths
    Home size: 2,597 sq ft
    Lot size: 5,662 sqft
    Year built: 2002
    Days on market: 1
  13. 4 beds, 4 baths
    Home size: 2,100 sq ft
    Lot size: 33,976 sqft
    Year built: 1984
    Days on market: 1
  14. 4 beds, 2 baths
    Home size: 2,183 sq ft
    Lot size: 8,276 sqft
    Year built: 1953
    Days on market: 1
  15. 3 beds, 3 baths
    Home size: 2,225 sq ft
    Lot size: 3,049 sqft
    Year built: 2014
    Days on market: 1
  16. 3 beds, 3 baths
    Home size: 2,225 sq ft
    Lot size: 3,049 sqft
    Year built: 2014
    Days on market: 1
  17. 4 beds, 3 baths
    Home size: 2,066 sq ft
    Lot size: 4,356 sqft
    Year built: 2008
    Days on market: 1
  18. 3 beds, 2 baths
    Home size: 1,404 sq ft
    Lot size: 2.34 ac
    Year built: 2004
    Days on market: 1
  19. 4 beds, 3 baths
    Home size: 2,256 sq ft
    Lot size: 6,969 sqft
    Year built: 1997
    Days on market: 1
  20. 4 beds, 3 baths
    Home size: 2,087 sq ft
    Lot size: 4,356 sqft
    Year built: 1995
    Days on market: 1
  21. 2 beds, 2 baths
    Home size: 2,320 sq ft
    Lot size: 19,166 sqft
    Year built: 1968
    Days on market: 1
  22. 5 beds, 3 baths
    Home size: 2,277 sq ft
    Lot size: 3,484 sqft
    Year built: 2016
    Days on market: 1
  23. 2 beds, 2 baths
    Home size: 1,233 sq ft
    Year built: 2006
    Days on market: 1
  24. 4 beds, 6 baths
    Home size: 2,310 sq ft
    Lot size: 3,920 sqft
    Year built: 2005
    Days on market: 1
  25. 3 beds, 4 baths
    Home size: 2,238 sq ft
    Lot size: 1,306 sqft
    Year built: 2007
    Days on market: 1

See all Clark County Homes For Sale From $271,050 To $400,000.
(all data current as of 7/28/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.