The Federal Housing Administration’s (FHA) national loan limit ‘ceiling’ is scheduled to decrease from $729,750 in high-cost areas to $625,500, effective January 1, 2014. The new loan limit will affect approximately 650 counties throughout the United States and applies only to those mortgages assigned an FHA case number on or after January 1, 2014 to December 31, 2014. The loan limit ‘floor’ for FHA-insured mortgages will remain at $271,050.
Carol Galante, FHA Commissioner, stated, “As the housing market continues its recovery, it is important for FHA to evaluate the role we need to play. Implementing lower loan limits is an important and appropriate step as private capital returns to portions of the market and enables FHA to concentrate on those borrowers that are still underserved.” http://bit.ly/1aSLNqB
To read the public letter issued by the Department of Housing and Urban Development (HUD) regarding the loan limit change, visit http://bit.ly/18AEeIo.