Conforming and FHA loan limits for 2014 have recently been released. Conforming loan limits will remain the same as 2013. However, FHA loan limits are being lowered in 2014 from $567,500 to $506,000 for a single family dwelling. The 2014 FHA loan limits are effective with case numbers obtained January 1, 2014 through December 31, 2014. So you can start your purchase or refi transaction during the last few weeks of this year and still have the higher 2013 FHA loan amount as long as the case number is obtained prior to January 1, 2014. FHA loan limits do not apply to FHA streamlined refi’s.
The following loan limits for 2014 are for King County, Snohomish County and Pierce County:
Conforming and FHA 2014 Loan Limits:
1 Unit: $506,000
2 Unit: $647,750
3 Unit: $783,000
4 Unit: $973,100
FHA has been working hard over the past 12 months to reduce their risk by several loan changes with loan limitations being only one of them. One very disconcerting change that happened earlier this year is the implementation of permanent mortgage insurance. Regardless of the equity ratio, MI will remain a part of the payment until loan payoff. Additionally, their rates are higher than most lenders. An adjustment that could cost borrowers thousands in the long run.
We saw a pretty significant drop in FHA Loan Limits in NC for 20124 – the interesting thing is that this has happened 4 times since 2008, and each of the previous times, the limits were later pushed back to the original maximum FHA Loan limits for NC. This time, however, it appears the FHFA has other ideas. Thanks for the update!