FHA mortgage limits fact

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Even though you would like to believe an underwriter for a major bank would know the FHA regulations and have a healthy comprehension of the same there are instances where they can stand corrected. Helping agents and loan officers be accurate on the front end should help in circumstances like the one I recently witnessed.

Disputing information without a valid and enforceable source is useless so make sure you have that at hand. After all we have all seen the "yes you are" "no I'm not" back and forth disputes even here on AR without ever seeing an actual result we could "take to the bank".

Here is one you can "take to the bank".

The FHA mortgage limits as published on the HUD website do not include the Upfront Mortgage Insurance Premium (UFMIP). Therefore if the mortgage limit for your area and a single family home is, for example, $346,250 that is the maximum base loan amount and does not include the UFMIP.

Now here's that valid and verifiable source (the HUD handbook):



The maximum insurable mortgage is the lesser of: (1) the statutory loan limit for the area (typically a county or metropolitan statistical area (MSA)) or (2) the applicable loan-to-value (LTV) limit.

Most FHA mortgages require payment of an upfront mortgage insurance premium (UFMIP). The statutory loan amount and loan-to-value limits described in this Handbook do not include the UFMIP. All descriptions of maximum insurable mortgages throughout this Handbook, unless otherwise stated, exclude UFMIP.


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I started writing on Active Rain in 2006 when I was representing the mortgage industry. I am no longer in that industry and many of the older posts contain outdated information. Please do not contact me for LENDING or MORTGAGE questions but rather contact a licensed mortgage professional from your area. I have always been in marketing and branding and that is still what I do. Thanks for reading!

Comments (1)

William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX


Good information.

It is like a spot in the original "Star Trek" while Spock is trying to hack into another ships computer and Kirk explains to Bones that it's not the fastest or more most powerful that wins but rather the one that most understands how things work! It's the same in real estate and mortgage lending!

Very often when you're told "it can't be done" what they really mean is they can't do it!


Feb 03, 2010 04:10 AM