FHA increases loan limits in nearly every area of US for 2018
LESLIE WATERS HEIMER
Providing a high touch lending experience for Orlando, FL.
The Federal 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.
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“… For Orange County, the maximum loan amount will go from $277,150 to $294,515.”
LESLIE WATERS HEIMER
FHA 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.
Last year, the FHA increased loan limits for just 188 counties. Then, in 2017, this number jumped to 2,948 counties that saw an increase. However, in 223 counties, the FHA loan limits will remain the same.
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The 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.
Leslie Waters Heimer
Orlando Market President & Sr. Lending Partner
LESLIE WATERS HEIMER
“Click here for a complete list of FHA loan limits.
The news follows Federal Housing Finance Agency’s plans to increase the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018.”