FHA has just announced that for 2014 their “High Cost Area Ceiling” limit of $729,750 will expire on case numbers issued on or after January 1, 2014. The new limit on January 1st will be $625,500 in areas such as Rockville, MD (this is in-line with current conventional mortgage limits).
Counties impacted in our area are:
Maryland: Montgomery / PG / Frederick: Dropping from $729,750 to $625,500
DC: Dropping from $729,750 to $625,500
Northern Virginia: Dropping from $729,750 to $625,500
Full list can be found: http://1.usa.gov/1iZI6cE
Areas in-between the $417,000 “floor” and up to $625,500 appear to have stayed the same:
Howard / Anne Arundel / Baltimore: Will remain at $494,500
Full list can be found at: http://1.usa.gov/18Wxd7m
This is important for any buyers looking above $648,000 in Rockville, MD and hoping to go FHA, they will need to be under contract and in loan process (case number ordered) prior to January 1. The only other option is a conventional loan with 10% down.
As always, our Community Bank with in-office underwriting, processing, and closing can settle in as little as 2 weeks, and since everything is done here in our Rockville office we have direct control over ordering FHA case numbers. Please contact me with any further questions about this.