HUD Hikes FHA Loan Limits

The Department of Housing and Urban Development has officially increased the limits on single-family mortgages insured by the Federal Housing Administration.As of Jan. 1, the new "floor," or basic mortgage limit, is $154,896, while the maximum, or "ceiling," in high-cost areas is $280,749. The new FHA loan limits are based on the increase in the ceiling on conventional home loans that can be purchased or securitized by Freddie Mac, which rose 7.3% as of Jan. 1, from $300,700 to $322,700. The floor, which covers most of the nation's 3,000-plus counties, is set at 48% of the Freddie Mac limit. The ceiling, which applies to about three dozen high-cost markets, is 87% of the conforming loan limit or 95% of the median house price for the area, whichever is less. Loan limits have also been increased for two- to four-unit properties and for houses outside the continental United States. The new nationwide basic limits are: $198,288 for two-unit structures; $239,664 for three-unit structures; and $297,840 for four-unit buildings. For high-cost areas, the new ceilings are: $359.397 for two-unit homes; $434,391 for three-unit properties; and $539,835 for four-unit structures. In Alaska, Guam, Hawaii, and the Virgin Islands, the limits are 150% of the new maximums.