Rising Home Prices Spur Increase in FHA Loan Limits
Federal Housing Administration (FHA) loan limits will rise in most areas in 2017, applicable to cases assigned on or after Jan. 1, 2017, FHA recently announced. The increase, motivated by rising home prices, comes after the announcement that maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac would also rise next year.
The loan limit ceiling, according to a released by the U.S. Department of Housing and Urban Development (HUD), will rise to $636,150 from $625,500 in high-cost areas (areas where the loan limit exceeds the floor). The floor will rise to $275,665 from $271,050, applicable to areas where 115 percent of the median home price is less than 65 percent of the national conforming loan limit of $424,100.
The maximum claim amount for FHA-insured reverse mortgages (HECMs) will also rise to $636,150, 150 percent of the national conforming loan limit.
View the FHA loan limits by county here.
Reprinted with permission from RISMedia 2016.