Do you find yourself scratching your head whenever you begin hunting for the FHA Loan Limits and what you get appears unsatisfactory to you because of no reliability?
Is that the place where you have been of late in search for the FHA Mortgage Limits?
If affirmative, you are not alone!
Question is: what can be done about it so that you no longer have to be in the dark?
Well, we’ve got you covered for sure, however, before we dive into the concept of “2019 FHA Loan Limits”, let’s take a glimpse at what our users are questioning about.
Among other most intelligent questions asked by the buyers, we also get enquired about:
- What are the FHA Loan Limits for 2019?
- What are the FHA Loan Limits by County?
- What are the FHA Loan Limits for High-Cost Areas?
- What are the Loan Limits for Low-Cost Areas?
- How are the Loan Limits Determined?
We are going to answer all of these questions one after the other so that you, at the end of the article, can get the peace of mind.
FHA Loan Limits
Areas at Ceiling – Download PDF
Areas between Floor and Ceiling – Download PDF
The FHA is the authority that ensures the loan amount and there is a limit to that amount, known as FHA lending limit. These loan limits are figured and updated on an annual basis.
The conventional loan limits also affect the FHA loan limits. Into the bargain, the home type, for example, duplex or single-family can also impact the limits.
The loan lending limits in different counties differ and therefore, you should be mindful of the lending limits for the loan of the county you are interested in.
FHA Floor Limits:
Insofar the 2019 year is considered, the FHA floor, for single-family home loans was set at $314,827. Perhaps, you don’t know but the minimum lending amount covers 80% of all U.S. counties. Below is the maximum loan amount that is illustrated for your convenience.
Low-Cost Areas:
| Single | $314,827 |
| Duplex | $403,125 |
| Triplex | $487,250 |
| Fourplex | $605,525 |
FHA Ceiling Limits:
So far we have talked about the “Floor Limits”.
But what about the “Ceiling Limits”?
Don’t worry, we’ve got you covered there too.
The FHA ceiling limit, for single-family home loans, was set at $726,525.
Don’t have any idea about this value? Well, this is the highest amount that you, as a borrower, can get through the FHA loan program.
The amount of the high-cost areas can be clearly seen all the way through the table exemplified below:
High-Cost Areas:
| Single | $726,525 |
| Duplex | $930,300 |
| Triplex | $1,124,475 |
| Fourplex | $1,397,400 |
Are there any places that have higher construction costs? As a matter of fact, there are and they are Alaska, Guam, Virgin Islands, Hawaii, and other counties or territories.
The ceiling limit for this special-exception, you can make use of the illustration given underneath in the table:
| One-unit | $1,089,787 |
| Two-unit | $1,395,450 |
| Three-unit | $1,686,700 |
| Four-unit | $2,096,100 |
Do FHA Loan Limits Change?
In different counties of the U.S., the limits for FHA loan do change, however, this doesn’t happen every single day. Furthermore, a change in the loan limits of some counties doesn’t mean that this will happen to every single county. There are some counties of America that stay the same no matter what.
Therefore, if you really want to keep track of what goes on pertaining to the mortgage lending limit, our suggestion is that you keep an eye on HUD’s tool that is designed to check out the “FHA Mortgage Limits” for the current year which, in this case, is 2019.
With this tool, you will be able to get to know the FHA or GSE mortgage limits at your fingertips. Not only that, be familiar with the “Median Sale Price” value of each jurisdiction. We all know how important the Median Price is because they, as a matter of fact, help us determine the FHA loan limit.
- You can sort the tool by State, County, County Code, MSA or MSA Code
- Choose directly a State Name
- You can also specify the Limit Type and Year
Here’s the link: https://entp.hud.gov/idapp/html/hicostlook.cfm
How are FHA Loan Limits Calculated?
A couple of days, a visitor asked our team, “How are FHA Loan Limits calculated”.
If you just thought of the same question a moment ago, we are glad that you made it here because now, we will tell you exactly how it is determined. Consider the following:
The FHA loan limits are calculated by the county or territory where the home is located, leaving those properties that are situated in some metropolitan or “micropolitan” statistical areas.
According to the HUD, the limits, in metro areas, are set on the basis of the county with the uppermost median home price within the metropolitan statistical area.
Well, it is true nothing can be clearer than what HUD specifies and therefore, the rule of thumb is that you should go with what the HUD says regarding the FHA loan limits.
Based on the percentage of the compliant loan limits, the maximum lending amounts are decided and this is all done in accordance with the guidance of FHFA. Furthermore, the home price also affects this.
For example:
The FHA’s minimum loan limit (national) “Floor” is usually set at 65% for the low-cost area of the national conforming amount for the United States. You could also take other examples for granted through the link above.
FHA Mortgage Lending Limits – What You Should Know
What both mortgage buyers and shoppers need to understand is that just like 2018, the 2019’s FHA Loan Limit won’t stay the same – they are likely to change, usually every year, especially also when we are talking about the different county.
So, in order to have the precise details, you must first understand what your county is. The Home Price Index (HPI) is also what plays a major role in determining the FHA loan limit.
What you need to do, to know your county, is go through the PDF documents that are attached at the beginning of this thorough guide so as to find the current loan limits for your county or area.
FHA “Floor” & “Ceiling” Lending Limits
In accordance with the HUD department, the caps for floor and ceiling vary and you are going to see the difference in the amount every year.
The highest FHA lending amount for high-cost metropolitan areas rose to $726,525 for the 2019 year (which rose from $679,650 as far as the 2018 year is considered).
As much as low-cost areas are thought about, the limit for an FHA loan could be as low as $314,827.
Question is: do “floor” and “ceiling” also affect the lending amount? Yes. You are going to see a slight rise in the FHA lending amounts when compared with the median home price within a particular area.
This could be a good sign for the buyers who are looking forward to buying a home that is modestly priced.
Summarizing!
Being familiar with the 2019’s FHA Loan Limits by Country is an important task because you may not have any idea about the lending amounts. If you are into the “County-Wise” loan limit lookup, we suggest that you follow the link that we shared with you above. That will surely allow you to filter the loan limits based on your County, State, or Metropolitan Statistical Area (MSA). You can even use codes like Country code or MSA code to narrow down the search and make it easy for the tool to bring the results to life for you.
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