2017 FHA Loan Limits Announced

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Mortgage and Lending with Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, NMLS #138061 MMCD #1141
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2017 FHA Loan Limits Announced

 

     HUD announced today updated loan limits for the FHA loan program that will take effect for all FHA Case numbers created on or after January 1, 2017

FHA loan limit increase for 2017

     As with the recent announcement on conventional loan limits, HUD has implemented maximum loan amount increases in 2,948 counties across the country, with only 286 counties having the same loan limits as 2016.  There were no counties in the country with decreased loan limits for the new year.


To search for your state/county loan limit for 2017 click here (Use the dropdowns, and remember to change the "Limit Year" to 'CY2017')


 

     For those curious why an area didn't see more of an increase or wondering why their county loan limit is lower than they'd expect, it's important to remember what the FHA program is.  FHA is intended to offer a low down payment option mortgage with competitive rates to low and moderate income borrowers.  They also serve niches such as the $100 down HUD owned program, the 203k renovation loan, and disaster relief mortgage products.  The program is not meant to be a primary means of financing for expensive homes or high income borrowers (though in many high cost areas, the program serves this demographic).

 

     The "ceiling" for FHA loans nationwide is set at 150% of the national median home value - for 2017, this calculation results in a maximum FHA loan amount of $636,150.  The "floor" for FHA loans is calculated using 65% of the national median home value, and for 2017, results in a minimum loan limit of $275,665.

 

     If you live in a very expensive area of the country (San Francisco, for example) you can expect to finance up to the program maximum for "high cost" areas, where other counties throughout the country have varying loan limits based on local median home prices.  Throughout the country, though, the FHA loan limit will fall somewhere between the floor & ceiling - you can use the lookup tool to see where your local market falls.

 

     For real estate agents, it's important to note that these changes are in effect not for loans closed in 2017, but for case numbers created and assigned in 2017 - so if you have a client that will benefit from the FHA loan limit increases, it's important if you go under contract before January 1, to ensure the lender does not pull the FHA case number until after January 1.  If your clients are impacted, they'll surely appreciate your saving them upwards of $11,000 in high cost areas or $4500 in low cost areas by increases the maximum they can finance.

 

For any questions pertaining to FHA loan limits, conventional loan limits, or anything else mortgage related, give me a call at 484.680.4852 or ask an expert here!

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Rainmaker
1,788,850
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Hi John... thanks for this. I know I'll be getting updates from various of my lenders in coming weeks. But I like the links you provided... so bookmarked for future reference.

Dec 01, 2016 03:04 PM #1
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

John I just got notification today of the new FHA Loan Limits, and they stayed the same.  It would be nice if they went back up to the conforming loan limits in my area.

Dec 01, 2016 03:14 PM #2
Rainmaker
531,759
Mark Don McInnes, Sandpoint
Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Hello John,  Good information to share and like Nina Hollander I will be book marking this one.  Mark

Dec 01, 2016 05:05 PM #5
Rainmaker
1,244,880
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One - Carlsbad, CA
Presence, Persistence & Perseverance

John Meussner Thanks for the reminder to review the revised limits for our market areas.

Dec 02, 2016 06:33 AM #6
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Anna Banana Kruchten, CRS
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

John thanks for the update. I looked up our county and it's gone up a bit but not much.  We don't have many FHA buyers but when we do this is very helpful information for the next year. Thanks!!

Dec 02, 2016 08:48 AM #7
Rainmaker
1,463,138
Lottie Kendall
Today | Sotheby's International Realty - San Carlos, CA
Serving San Mateo County and San Francisco

Thanks John. I learned it first here, from you! Notes taken; post bookmarked.

Dec 02, 2016 08:59 AM #8
Rainmaker
2,165,932
Rebecca Gaujot
RE/MAX Vision Quest - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

John, thank you for this very useful information on FHA loans

Dec 03, 2016 11:58 AM #9
Rainmaker
1,405,480
Patricia Feager
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

John Meussner - Thank you for the current update! I greatly appreciate it and hope 2017 will be a better year for everyone!

Dec 07, 2016 11:34 AM #10
Rainmaker
1,078,711
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

Let's hope, it will provide stability and certainly to our CA housing market by giving more CA buyers a chance at home-ownership. 

Feb 20, 2017 03:22 PM #11
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John Meussner

#MortgageMadeEasy Costa Mesa, CA 484-680-4852
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