[quote=SD Realtor] . . . The people who bought it went FHA and then lost it… surprise surprise.[/quote]
I’ve always maintained that the maximum FHA loan should be no more than $300K in this region. The FHA 1-4 unit purchase program was originally put in place to serve first-time and/or moderate income buyers but has been used for move-up and luxury purchases in recent years because of inflated unrealistic caps.
I believe that at least half of MM (older half) fits this description but has been run up in price in recent years by too-high FHA and VA financing caps, as well as sub-prime money. Fundamentally, there is no reason for a 1980’s MM tract home to cost $400K+.
