FHA Increases Loan Limits For 2019

Dated: 12/19/2018

Views: 441

FHA loan limits increased for 2019

WASHINGTON – Dec. 17, 2018 – The Federal Housing Administration (FHA) announced the agency's new schedule of loan limits for 2019, with most areas in the country to experience an increase in loan limits in the coming year. These loan limits are effective for FHA case numbers assigned on or after Jan. 1, 2019 and mirror earlier limits announced by the Federal Housing Finance Administration (FHFA).

In high-cost areas of the country, FHA's loan limit ceiling will increase to $726,525 from $679,650. FHA will also increase its floor to $314,827 from $294,515.

FHA says that increases in median housing prices required changes to FHA's floor and ceiling limits, which are tied to the Federal Housing Finance Agency (FHFA)'s increase in the conventional mortgage loan limit for 2019.

Overall, the maximum loan limits for FHA forward mortgages will rise in 3,053 U.S. counties. In 181 counties, FHA's loan limits will remain unchanged.

By statute, the median home price for a Metropolitan Statistical Area (MSA) is based on the county within the MSA having the highest median price. HUD has used the highest median price point for any year since the enactment of the Housing and Economic Recovery Act (HERA).

The cap for reverse mortgages – FHA-insured Home Equity Conversion Mortgages (HECMs) – will increase to $726,525 from $679,650. FHA's current regulations implementing the National Housing Act's HECM limits do not allow loan limits for reverse mortgages to vary by MSA or county.

The National Housing Act, as amended by HERA, requires FHA to establish floor and ceiling loan limits based on the loan limit set by FHFA for conventional mortgages owned or guaranteed by Fannie Mae and Freddie Mac. FHA's 2019 minimum national loan limit, or floor, of $314,827 is set at 65 percent of the national conforming loan limit of $484,350. This floor applies to those areas where 115 percent 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 percent ($726,525) of the national conforming limit.

In Okaloosa and Walton Counties the limit is $370,30o, Santa Rosa County the limit is $294,515.

© 2018 Florida Realtors®

Want to Advertise on this Site?

Latest Blog Posts

FHA Increases Loan Limits For 2019

FHA loan limits increased for 2019WASHINGTON – Dec. 17, 2018 – The Federal Housing Administration (FHA) announced the agency's new schedule of loan limits for 2019, with most areas in the

Read More

How To Negotiate Repairs After A Home Inspection

How to Negotiate Repairs After a Home Inspection: Haggling Tips for BuyersBy Cathie Ericson | Oct 19, 2017 fstop123/iStockIf you're buying a home, you'll want to know how to

Read More

Maximize Your Cash Low With PMI

If you've owned a home or shopped for one, you undoubtedly know that lenders require private mortgage insurance(PMI) when a downpayment totals less than 20 percent of a home's purchase price.  

Read More

Chip And Joanna Gaines Target Collection

Chip and Joanna Gaines' Target Collection: 6 Home Decor Items That Will Sell Out FastBy Natalie Way | Nov 3, 2017 target.comNow's your chance to bring a little piece of Chip and

Read More