This year, the FHA increased its loan limits for most counties all over the country.
Loan limits for FHA vary by county. The amount is determined by the Department of Housing and Urban Development (HUD). Typically, they calculate the limits as a percentage of the limits for conforming loans set by the Federal Housing Finance Agency (FHFA).
Usually, when the FHFA raises a county or nationwide’s conforming caps, the HUD follows by increasing their FHA loan limits as well.
And after the FHFA increased their loan limits for conforming loans on November 23, 2016, the FHA followed a week later saying that they increased their loan limits for 2017.
What are the current FHA loan limits?
In 2016, the FHA national loan limit “ceiling” in high-cost areas was at $625,500. For this calendar year, the high-cost area “ceiling” is at $636,150. The “floor” limit for low-cost areas was $271, 050 in 2016. In 2017, the “floor” was raised to $275,665.
As for the loan limits for the FHA-insured Home Equity Conversion Mortgages (HECMs), the FHA’s reverse mortgage program, they are increased to $636, 150 in all areas.
The following limits specified are for standard, single-family family homes. They are usually considered as “one unit” properties. And since these limits are based on the size of the property, multi-unit properties have a higher limit allowed for them.
Keep in mind that the FHA program would only allow for borrowers who would get financing for properties up to four units. Anything over that would be considered commercial.
Want to qualify for an FHA loan? Our lenders can help.Here are the FHA loan limits for 2017 based on property size:
| Property Size
| Low-Cost Area “Floor”
| High-Cost Area “Ceiling”
|
| One Unit | $275,665 | $636,150 |
| Two Units | $352,950 | $814,500 |
| Three Units | $426,625 | $984,525 |
| Four Units | $530,150 | $1,223,475 |
FHA loan limits are calculated based on the county where the property resides. These are known through the county’s average home price. But in metropolitan areas, the limit is set based on “the county with the highest median home price within the metropolitan statistical area,” as per HUD.
The increase in most home prices in 2016 is what led the FHA to increase their loan limits for 2017. Although there were counties that remained unchanged, the limits mostly went up.
Since FHA loan limits go through changes from time to time and would vary based on the county where the property is located, borrowers can do a database search on the HUD site.
You can also get help from our lenders.