FHA (Federal Housing Administration) loan limits have been increased for 2020. This is great news for both homeowners looking to refinance their mortgage (lower rate, cash out, shorter term) or home buyers looking to purchase a new home. It's important to remember the following; when buying a home with a FHA loan you can only use that loan to purchase a primary residence. Investment properties and vacation homes are not allowed.
The New Limit:
Mid-December 2019 HUD made the announcement; loan limits for FHA loans was increasing by nearly $17,000 and in high cost counties the increase is over $35,000 in 2020! Wow; big news for homeowners as it will open the door to more opportunities for people looking to purchase a home or refinance a current mortgage.
The increase brings the limit to $331,760 and for 70 counties that increase is to $765,600. The FHA home loan limits in 2019 were $314,827 and in the high cost counties it was $726,600.
Want to know your county limit?
Visit HUD's website for your FHA home loan limit.
Thousands of lender across the country offer FHA home loans and with these changes they'll be able to help more homeowners throughout the country.
Why FHA:
The FHA home loan program is one of the best home loan programs in the country. If you have less than perfect credit and a small down payment (or little equity if you're doing a refinance) than the FHA home loan program is something you should look at and strongly consider. A FHA fixed rate mortgage can help reverse a denial and put a borrower into a home they can afford.
- If you have a 680 or lower credit score the FHA home loan program is a great option
- If you have less than a 10% down payment consider FHA
- For those that currently have a FHA loan and want to refinance, use the FHA Streamline refinance program and be done with the process in two - three weeks.
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