December 8th, 2017 7:00 AM by Jackie A. Graves, President
More than 3,000 counties to see increases
Housing Administration announced Thursday that nearly every area of the U.S.
will see FHA loan limits increase in 2018.
The new loan limits will take effect for FHA case numbers
assigned on or after Jan. 1, 2018.
is required by the National Housing Act, as amended by the Housing and Economic
Recovery Act of 2008, to set Single Family forward loan limits at 115% of
median house prices, subject to a floor and a ceiling on the limits. FHA
calculates forward mortgage limits by Metropolitan Statistical Area and county.
in 2016, the FHA increased loan limits for just 188 counties.
Then, in 2017, this number jumped to 2,948 counties that
saw an increase. And now, the number of counties increased even further to
3,011 counties for 2018.
high-cost areas, the FHA’s loan limit ceiling will increase to $679,650, up
from $636,150 this year. The floor will also increase from $275,665 to $294,515
in 223 counties, the FHA loan limits will remain the same.
National Mortgage Limit for FHA-insured Home Equity Conversion Mortgages, or
reverse mortgages, will also increase, rising from $636,150 to $679,650.
Currently, the FHA regulations implementing the National Housing Act’s HECM
limits do not allow loan limits for reverse mortgages to vary by MSA or county;
instead, the single limit applies to all mortgages regardless of where the
property is located.
FHA’s minimum national loan limit, or floor, is currently set at 65% of the
national conforming loan limit of $453,100. This floor applies to those areas
where 115% of the median home price is less than the floor limit. Any areas
where the loan limit exceeds this floor is considered a high-cost area, and
HERA requires FHA to set its maximum loan limit ceiling for high-cost areas at
150% of the national conforming limit.
here for a complete
list of FHA loan limits.
news follows Federal Housing Finance Agency’s recent
announcement that it plans to increase the maximum conforming
loan limits for mortgages to be acquired by Fannie Mae and Freddie
Mac in 2018.
By Kelsey Ramírez – To view
the original article click here