FHA Increases Loan Limit

FHA Increases Loan Limits for 2018

The Federal Housing Administration (FHA) has announced their new loan limits—and it looks like nearly every area will see an increase in 2018!

Due to a rise in median housing prices and an increase in conventional mortgage loan limits, the maximum loan limits for an FHA mortgage will rise in over 3,000 counties!

The U.S. Department of Housing and Urban Development (HUD) is required each year to set a maximum mortgage loan limit that the FHA can insure. Loan limits ensure that the size of loans given reflects the changes in the average U.S. home prices. These limits adjust each year based on those set by the Federal Housing Finance Agency (FHFA) for conventional mortgage loans.

What that means for YOU!

With these limit increases, homebuyers may qualify for more than in previous years! In high-cost areas, the FHA’s maximum loan limit, known as the “ceiling”, will increase to $679,650. The minimum national loan limit, or the “floor”, will increase to $275,665.

Please note, that there are several counties where these loan limits will remain the same.

For a complete list of FHA loan limit areas, please visit www.hud.gov.


By Meagan Rochard