It’s about that time of year when government agencies convene in an effort to discuss 2014 FHA loan limits, guideline modifications, easements and new standards for home buying and refinancing in the year to come. To nobody’s surprise many home buyers and real estate professionals are praying for FHA to raise loan amount limits in 2014. This helps borrowers because it often increases their purchase power by allowing higher loan amounts with house buying that only requires a 3.5% down payment in most cases.
How New House Buyers Benefit from Raised 2014 FHA Loan Limits
Did you know that FHA mortgage limits vary by property type? The Federal agency insures larger loan sizes for a 4-unit home, for example, than a single-family home or a condominium. The FHA will also insure greater loan sizes in regions the agency considers to be “high-cost”. If you were wondering, the Federal Housing Administration deliberates that an area is high-cost if its median house sale price exceeds the national average by specific fixed amount. Did you know that this year there were 74 counties in the United States that reached the maximum size allowed for FHA insured mortgages? Dan from the Mortgage Reports.com reported that there are another 697 counties in nationally in which the FHA limits are higher than the conforming limit set by Fannie Mae and Freddie Mac.
What are the Loan Amount Limits for FHA Mortgages in Your Area?
In all other counties, limits on FHA home loans are as follows:
•1-Unit House : $271,050
•2-Unit House : $347,000
•3-Unit House : $419,425
•4-Unit House : $521,250
In high-cost regions such as New York City; New Jersey, Colorado, Virginia, Maryland, Washington and most of California. In these regions, FHA loan limits range up to:
•1-Unit House : $729,750
•2-Unit House : $934,200
•3-Unit House : $1,129,250
•4-Unit House : $1,403,400
The FHA has designated four areas in which loan limits are even higher, replicating the abnormally high cost of living. These four areas are Hawaii, Alaska, Guam and the U.S. Virgin Islands.
•1-Unit House : $1,094,625
•2-Unit House : $1,401,300
•3-Unit House : $1,693,875
•4-Unit House : $2,105,100
FHA offers genuine opportunities for people with low credit scores, limited credit and 1st time home buying. Looking for Help? Compare FHA Lenders for First Time Home Buyer Loans
Please be aware that the Department of Housing and Urban Development, Congress and the Federal Housing Administration review the loan limits in early fall each year in an effort to set the maximum loan limits for the following year. When delinquencies and defaults rise, it is common for HUD to adjust the FHA mortgage limits accordingly. We anticipate that 2014 FHA loan limits will be similar to this year as defaults have tapered off and the housing sector has been recovering with strong gains in most areas across the United States.