Higher Limits Nationally
As was the case recently for conventional conforming loan amounts, loan limits on forward and reverse mortgages insured by the Federal Housing Administration have been boosted for next year. FHA floor loan limits are determined based on 65 percent of conforming limits on residential loans that are acquired by Fannie Mae and Freddie Mac. Late last month, the regulator and conservator of Fannie and Freddie, the Federal Housing Finance Agency, reported that the 2018 conforming limit has been set at $453,100.
On Thursday, the Department of Housing and Urban Development issued a letter indicating that the FHA floor limit on forward mortgages for next year on one-unit properties will increase to $294,515 from $275,665 in 2017. This floor applies to those areas where 115 percent of the median home price is less than the floor limit,” the letter stated. “Any areas where the loan limit exceeds this ‘floor’ is considered a high-cost area, and HERA requires FHA to set its maximum loan limit ‘ceiling’ for high-cost areas at 150 percent of the national conforming limit.” In high-cost areas, the one-unit ceiling limit is increasing to $679,650 in 2018 from $636,150 last year.
Thanks to rising home prices, FHA loan limits are increasing in 3,011 counties, while no change will occur in 223 counties. The Washington, DC area is at the high cost limit of $679,650. Examples of additional areas in the Mid-Atlantic region which are above the base limits include: VA -- Richmond ($535,900), Virginia Beach of ($458,850), Lynchburg ($292,100); MD -- Baltimore ($517,500); NC --Charlotte ($280,600), Greensboro ($275,665).
Source: Mortgage Daily