New FHA Mortgage Limits

Hot off the press for single family dwellings, revised FHA Loan Limits:

King County, Snohomish and Pierce Counties
Single Family: $567,500
Two Family: $726,500
Three Family: $878,150
Four Family: $1,091,350

FHA mortgages allow for minimum down payment (roughly 3%) and does require FHA mortgage insurance.

The Wall Street Journal reports that “the [FHA] upper mortgage limits also will apply to loans purchased or guaranteed by government-sponsored mortgage companies Fannie Mae and Freddie Mac, FHA officials said”

More information to follow soon. 🙂 I just had to share this breaking news.

This entry was posted in General, Mortgage/Lending and tagged , by Rhonda Porter. Bookmark the permalink.

About Rhonda Porter

Rhonda Porter is an NMLS Licensed Mortgage Originator MLO121324 for homes located in Washington state. Her blog, The Mortgage Porter, is nationally recognized for sharing relevant information to consumers about mortgages. She has been originating mortgages since 2000 at Mortgage Master Service Corporation #40445 Consumer NMLS Website: NMLS ID 40445. Equal Housing Opportunity. You can follow Rhonda on @mortgageporter, Facebook and/or Google+

32 thoughts on “New FHA Mortgage Limits

  1. That’s a nice bump. I don’t think I’ve ever heard a definitive answer on whether any parts of the country went down? The old limit was too high in much of the country from a risk standpoint (assuming that’s what the limits are all about). To me the change would be a lot more justified if every part of the country was based on a percentage of the median. Otherwise the change just seems like a way to help higher income people in certain parts of the country.

  2. Kary, I don’t understand your comment “they go down”?

    As I mentioned above, the Wall St Journal is reporting these will be the conforming limits as well. With that said, HUD was responsible for reporting what the new loan limits will be…now we need Fannie/Freddie and the banks to step into action.

    As of this morning, the rate sheets that I am receiving reflect the old limits.

  3. Rhonda,

    Please let us know if and as soon as they become the conforming loan limits. What are FHA rates right now compared to conforming rates? Other than MIP, what are the pros and cons of FHA vs. conventional financing if the conforming limit matches the FHA limit?

  4. ARDELL, here is an example for you to chew on… someone can purchase a duplex w/FHA financing, live in one unit and rent out the other with a loan amount up to $726,500, minimum down…low mortgage insurance. Once we have confirmation on the conforming loan limits, I’ll do a comparison post.

  5. Rhonda and all readers,

    We need make sure the general public knows that not every lender is an FHA-approved lender.

    I recommended to the Realtors in my class yesterday that consumers interview with three different types of mortgage lenders before making a decision: A broker, a bank, and a credit union. Not all will be approved to offer FHA loans, and none of these folks have a duty to point the consumer toward an FHA loan if their company does not offer FHA loans.

    So nice to know that our federal government is insuring loans up to 97% LTV in declining markets all across the United States.


    Let’s ALSO remember that FHA requires full underwriting, full documentation of income, assets, and funds to close. Thank goodness.

  6. I read the post to state that conforming limits are raised as well (not just FHA).

    Is that the case Rhonda?

    And yes, EVERY borrower should ask their lender if FHA would improve their situtation, and if their lender is authorized to do offer it.

  7. Jillayne, good point about FHA — not every lender is FHA approved. Consumers should ask their lender if they are FHA approved…if they’re trying to steer away (as many did to subprime) they probably are not.

    However…the consumers with FHA mortgages are paying for their mortgage insurance (upfront and monthly). I don’t see it as a “bail out”.

    I’m sure appraisals will continue to be scrutinized. They’ve been amazing on recent transactions (not just FHA).

  8. Roger, I just did a post on the conforming limits…what I’m not sure of is if conforming was only increased in certain counties or if they just referenced certain counties.

    Time will tell. Time will also tell us what the price hits (brackets) will be on loans over $417,000.

  9. Thanks for the news…after much ranting and raving here in the Santa Barbara CA area, we became one of 14 new areas to receive the maximum amount of $729,500. Still undecided in what this means and will mean to the market. I think a lot of people have been wrongly lead that all rates simply will drop if you are under this conforming limit.

  10. Santa Barbara, people may be assuming too. I’m afraid there’s going to be a significant adjustment to conforming loans over $417k. We won’t know until the lenders come out with pricing.

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