Earlier this month, the Federal Housing Administration (FHA) announced that loan limits in 2017 will increase in 2,948 counties. The agency attributed the increases to the rise in housing prices seen in many areas throughout the country. The new loan limits will apply to case numbers assigned on or after January 1, 2017.
In addition to the loan limit increases, the FHA stated they would lift the loan limit “ceiling” in high-cost areas from $625,500 to $636,150. They will also raise the loan limit “floor” from $271,050 to $275,665. Finally, reverse mortgages, or FHA-insured Home Equity Conversion Mortgages (HECMs), will rise to $636,150, which is “150 percent of the national conforming loan limit of $424,100.”
To read the FHA’s full press release and to see their revised loan limits page, visit http://bit.ly/2gZulPH.