With loan limits resetting for mortgages eligible for government backing on Oct. 1, the majority of respondents to a recent Big Builder Online survey--72.7%--said they are very concerned. Only 9.1% of respondents said they aren't concerned, while 18.2% said they are somewhat concerned.

On average, 36.4% of survey respondents said GSE and FHA loan limits are being reduced by more than $100,000 in their primary areas of business, while 27.3% said the limits are being reduced between $76,000 and $100,000 and 18.2% said between $1 and $25,000.

Almost half of the respondents--45.5%--said they expect the new loan limits to have some negative effect on demand for homes, but it will be localized based on geography or product type. However, 27.3% said the new limits will significantly decrease demand for homes, and 18.2% countered that they will have little to no effect on demand.

When asked about the segments of the market that will be most affected by the new loan limits, respondents pointed to first move-up, entry-level, and luxury.

More than half of the respondents--54.5%--said they predict between 1% to 25% of their sales could potentially be in jeopardy because of related financing issues stemming from the loan limits, while 36.4% predicted sales in jeopardy at between 26% and 50%.

As for what the loan limits will do for sales prices, 54.5% of respondents said they expect home price declines to be concentrated in a limited number of affected areas and 27.3% said they expect declines nationwide. The remainder of respondents said it's still unclear who will be affected and by how much.