HUD raises FHA loan limits across the U.S.

February 27 2018

As of January 1, the Department of Housing and Urban Development raised FHA loan limits in more than 3,000 counties across the United States. This is great news for prospective homebuyers because they can now borrow greater amounts than ever before, meaning their dream homes could be within reach.

What are the new limits?
The new loan limit maximum increased 6.4 percent, going from $636,150 to $679,650 in high-cost counties. That means potential homebuyers applying for an FHA loan have an extra $43,500 to borrow if they need it. The loan limit minimum rose as well, from $275,665 to $294,515. The FHA calculates mortgage limits by Metropolitan Statistical Area (MSA) and county. The loan limit for the Chicago-Naperville-Elgin MSA, for example, is $365,700 for a single-family home.

Why did the FHA increase the limits?
The National Housing Act requires the FHA to set loan limits to 115 percent of median home prices for single-family homes. And since home prices have been consistently increasing, the loan limits have followed suit.

How does it benefit prospective homebuyers?
Higher loan limits means more options for buyers and the opportunity to buy in areas they might not have otherwise qualified for. It also means buyers who don't have the best credit or biggest down payment may still be able to buy a home.

Interested in learning more about FHA loans? Contact us today!

Whether you are buying, selling, or refinancing, it is important to have an experienced mortgage professional to help you analyze your financing options, and make sure the closing goes smoothly. As a loan officer with Blueleaf Lending, I have the expertise and experience to get you the right mortgage, and to handle your transaction professionally. With my experience, and our rates and programs, you are sure to get the mortgage that is right for you. Please remember to get me involved early on in your home-buying process. Starting the Process not only gives you a better idea of what you can qualify for, it also gives you a stronger negotiation position when you find the home of your dreams.