Back on December 12th, Rhonda posted that FHA etc Loan Limits would be coming down to the same level as previously lowered conventional rates. This came up in a recent discussion I was having with a client and thought the news, which I believe became effective 1/1/2014, should be highlighted a little better, as this is very important news for some people.
Not surprising to us inside the industry. But definitely important to anyone thinking about buying with minimum down and even for those who were not aware of the previously lowered limit for conventional financing.
Disclosure: I am not a lender. Just bringing this news to the forefront now that these limits have become effective so that more people heading out to buy a house in 2014 are aware of the changes.
I also think it is interesting to compare our loan limits to the much lower limits around the State of Washington.
I’m having to double check FHA loan limits when I’m working on a scenario outside of King, Pierce or Snohomish counties since the limits vary so much.
Conforming limits are the same as 2013 – it’s FHA that was reduced in 2014.
Not sure why your comments got stuck in the pending comments filter, Rhonda. I saw them there a few minutes ago. Yes…you are of course correct that conforming limits are the same as 2013…but only because they reduced in advance of the current change for FHA.
For someone who is buying again in 2014 and hasn’t bought since 2005, both are changed from what they knew at that time and are again the same as one another. FHA just had a lag time causing them to be different from one another briefly.
Another change that I see is that Jumbo rates are also much lower in many cases and the spread between conforming…high balance conforming and jumbo is not as great as it once was. This has been true for some lenders for about two years or so with others just catching up on that.
Hi Ardell,
Conforming loan limits were reduced from $567,500 to $506,000 back in late 2011. :)http://mortgageporter.com/2011/09/conforming-loan-limits-for-washington-from-october-1-2011-until-december-31-2011.html