Following last week’s escalation in the conforming loan limit, the limit on mortgages insured by the Federal Housing Administration has been increased.
On Nov. 23, the
Federal Housing Finance Agency announced that the 2017 limit on loans backed by Fannie Mae and Freddie Mac rose to $424,100.
The increase in the conforming limit was the first time it has been lifted since 2006 and came as FHFA reported that home prices reached an all-time high.
Loan limits on FHA mortgages are a factor of the conforming limit.
On Thursday, the Department of Housing and Urban Development
announced that the FHA floor, which is equal to 65 percent of the conforming limit, has been raised to $275,665 for 2017 from $271,050 for 2016.
The high-cost limit on FHA loans, which is the same as on conforming loans, will increase to
$636,150 from $625,500.
“Due to changes in housing prices and the resulting change to FHA’s ‘floor’ and ‘ceiling’ limits, the maximum loan limits for forward mortgages increased in 2,948 counties,” the notice stated. “There were no areas with a decrease in the maximum loan limits for forward mortgages though they remain unchanged in 286 counties.”
On home-equity conversion mortgages, the maximum loan amount was also lifted to $636,150.
FHA limits by county are online at https://entp.hud.gov/idapp/html/hicostlook.cfm.
