2014 Conventional & FHA Loan Limits

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


2014 Loan Limits for Conventional & FHA Loans



     For the calendar year 2014, it was recently announced that loans backed by Fannie Mae and Freddie Mac will maintain their current maximum loan limits with NO changes.  This is great news for the real estate industry as there was recently talk of lowering the limits slightly.  While slightly lower limits wouldn't have a huge impact on lending, they could signal a declining real estate market & depreciating home prices.



     Unfortunately, HUD decided to take a different route and announced that FHA loan limits for calendar year 2014 will include a reduction of the maximum loan limit.  In some high cost areas the maximum loan amount is being reduced by more than $100,000.  This could be less indicative of the market and more indicative of HUD limiting exposure on HUD-insured mortgages, which have resulted in massive losses over the past several years as a result of a recession that included large numbers of foreclosures & short sales of HUD-insured properties.  Without further ado, here are the 2014 loan limits for conventional and FHA loans:


2014 Conventional Loan Limits**

1 unit (single family home) - $417,000

2 unit - $533,850

3 unit - $645,300

4 unit - $801,950

**These are the base loan limits.  Certain high cost areas (listed by county) across the country have higher limits  (up to $625,500 for the contiguous United States 1-unit, $721,050 for Honolulu, HI).


2014 FHA Loan Limits**

1 unit - $379,500 (down from $420,000)

2 unit - $485,800

3 unit - $587,250

4 unit - $729,800

**As with conventional loans, higher cost areas across the country allow for higher maximum loan limits.


Curious what the loan limits are in your county or across your state? 

Send me a quick message and I'll be happy to forward a pdf covering 2014 loan amounts for every county nationwide.



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Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

Very interesting news here John.  The real estate game is always changing, and knowing things like this ahead of time allow us to prepare to change with the game.  

Dec 09, 2013 07:52 AM #3
Ralph Gorgoglione
Maui Life Homes / Metro Life Homes - Kihei, HI
Hawaii and California Real Estate (310) 497-9407

John, thanks for the update. Staying up to date on the latest news is helpful. 

Dec 09, 2013 08:50 AM #4
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Thanks for the updates, John. Good to know for planning ahead


Dec 09, 2013 09:07 AM #5
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Sure thing Gita, thank you for commenting

Pamela - hopefully the impact won't be too bad, guess we'll find out.  Thanks for stopping by.

Jared - definitely helps to know what's coming.  Thanks for the comment.

Ralph - thanks for the comment & I agree, I try to keep on top of what's coming as much as possible.

Jeff -thank you for reading & leaving a comment.  Hope it helps with next years planning.

Dec 09, 2013 10:01 AM #6
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I wondering about FHA and one of the lenders I worked with said that the levels were merely returned to "pre-stimulus" levels because of the improvement in the real estate industry.  If this is accurate, then we are returning to a more "normalized" market.  What do you think?

Dec 09, 2013 10:45 AM #7
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Joan - the reduction will leave loan limits a little higher than pre-stimulus levels, and it's definitely a combination of factors (the loan limit increase was designed to be temporary help) - I don't think HUD anticipated such large losses - they just got a $1.7billion bailout this year, so the only option was to increase cost or limit exposure - since they already raised PMI costs so much, the only real option left without completely pricing out the FHA product was to reduce loan limits.  Since PMI is sky-high now, I don't think many people will miss the high balance FHA loan but I'm sure it'll exclude a few potential buyers....hopefully not too many.  I think with values just now stabilizing some nationwide and the great uncertainty with QM coming into play, I don't think we're quite 'normalized' yet - we won't see a truly normal market until the Fed stops pumping dollars out with QE.

Dec 09, 2013 11:30 AM #8
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

A delicate dance are interest rates indeed.

Dec 09, 2013 12:43 PM #9
Aaron Hofmann
Atlanta Communities - Smyrna, GA
aka Mr. Smyrna Vinings

FHA is trying to reduce their exposure after having to step in and fill a void created when many private lenders were no longer willing to make loans.

Dec 09, 2013 05:11 PM #10
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566

Thanks for the update. This area is low 600's per several emails just received.

Dec 09, 2013 07:00 PM #11
Ed & Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

Good Morning and this is some great news for all in the business,  keep up the good work and good luck with your business,  E

Dec 09, 2013 08:18 PM #12
Sharon Kowitz
CRS-SRES-ABR-GRI-E-Pro-CREN Fonville Morisey Cary, NC - Cary, NC
Cary, NC Relocation Specialist ~ Buying or Selling

We were just notified in Cary NC FHA loan limits go from 295k to 280k in a market with rising home prices 280k or less for a single family home is getting hard to find.

Dec 09, 2013 08:30 PM #13
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties
NAR lobbied hard on the conventional loan limits along with lenders. We should be grateful for that.
Dec 09, 2013 08:34 PM #14
Bill and MaryAnn Wagner
Wagner Real Estate Group - Ocean City, NJ
Jersey Shore and South Jersey Real Estate

Overall values in our market have declined substantially over the last several years and have finally started to level out. The reduction shouldn't have a significant affect for us.

Dec 09, 2013 09:41 PM #15
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

John, our FHA loan limits in Denver are decreasing by $102,000 starting January 1.   Big changes.

Dec 09, 2013 09:46 PM #16
Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Thanks John. I saw this. On the high balance loans I saw this was only 1% of the market so there shouldn't be too much effect. Thanks again!

Dec 09, 2013 09:47 PM #17
Jeff Stevens
Berkshire Hathaway HomeServices New Mexico Properties - Las Cruces, NM
Jeff Stevens REALTOR®/Associate Broker

Thank you, John. Not great news for some places but our market should be just fine with these new limits. Good post.

Dec 09, 2013 10:23 PM #18
Suzanne Otto
Six Twenty Designs - Lansdale, PA
Your Montgomery County PA home stager

I don't know, maybe it's a good thing HUD lowered the max amount. People can buy bigger homes with such a little down payment, I don't think they fully understand the costs. Just my opinion.

Dec 09, 2013 11:31 PM #19
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Laura - thanks for the comment!

Aaron - absolutely agree, maybe we'll see a pmi reduction too so they can really get back to helping the underserved (we can all dream, right?)

Cheryl - it varies by county, so depending on where you are it may be uniform for a large area or have several different limits if lots of counties are nearby.

Ed  - thank you!  On the conforming side I also think it's great news, I wasn't happy to see them consider reducing the max amounts.

Sharon - unfortunately that kind of result will be likely in many places.  While the high balance program isn't necessarily used often, lowering the limits across the board I don't think was a great idea.

Joe - I did see that NAR had significant input- I'm happy that they go to bat for the industry so often, especially since in the lending community we can't get our act together on capitol hill.

Bill - I hope you don't see any effect.  I can only foresee it being an issue with rising values in some areas, could make it tough for anyone with less than 5% down.

Joan - that's one of the more drastic decreases as is being seen across the high balance spectrum.  Since FHA is designed to help lower-income folks, it makes sense, but I think the timing was poor since the market is still somewhat fragile.

Paul - thanks for the comment, I don't think high balance will see much effect but dropping the limits at the lower levels could hurt in areas with rising values.

Jeffrey - thanks for stopping by, hopefully the effects won't be too bad across the country - folks will just have to save a little more prior to purchasing in some areas.

Suzanne - thanks for commenting, and I do agree to an extent.  I think lowering the high balance limits would've been ok, but cutting the limits across the board I think was done with poor timing - should've given it another year in my opinion.


Dec 10, 2013 12:26 AM #20
Kevin A. Guttman-Author, ReverseMortgageSpecialist
NMLS #384936 - Colorado Springs, CO

Hey John, we saw the FHA limit for our county go from $325k to $271,050. Quite a reduction! Thanks for your post.


Dec 10, 2013 06:34 AM #21
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Kevin, that is a tough break, hopefully it won't prevent too many buyers from entering the marketplace.  Thanks for the comment!

Dec 10, 2013 07:23 AM #22
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