FHA Announces New Loan Limits



The Federal Housing Administration (FHA) has announced the agency's new schedule of loan limits for 2016. These loan limits are effective for case numbers assigned on or after January 1, 2016, and will remain in effect through the end of the year.

Due to changes in housing prices, the maximum loan limits for forward mortgages increased in 188 counties. There were no areas with a decrease in the maximum loan limits for forward mortgages.

Each year, FHA recalculates its loan limits based on 115 percent of the median house price in the area. For counties, or equivalent, located in Metropolitan Statistical Areas (MSAs) the limit for all areas in the MSA is calculated based on the highest cost county.

There is no change to the FHA national loan limit “ceiling” which remains at $625,500 and the “floor” which remains at $271,050. FHA’s minimum national loan limit “floor” is set at 65 percent of the national conforming loan limit of $417,000. The floor applies to those areas where 115 percent of the median home price is less than 65 percent of the national conforming loan limit.

Any area where the loan limit exceeds the “floor” is considered a high cost area. The maximum FHA loan limit “ceiling” for high cost areas is 150 percent of the national conforming limit.

More info here--
http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2015/HUDNo_15-156

Comments

Post a Comment

Popular posts from this blog

Historical Average and Median Prices for Detached Homes in Fremont

Image
A request from a client to run a historical chart of the average and median prices for detached homes in Fremont last year has opened a lot of conversations.  This is the first time since BayEast MLS started recording sales data in 1997 that Fremont's average detached home (aka: single family homes) sale has officially reached the $1M mark.  As always, I don't have a crystal ball, I'm not a lawyer or accountant, so I can't interpret this chart for you.  This chart has NOT been adjusted for inflation, this is just the raw sales average and median prices.
Read more

San Leandro Rent Control Update

In a surprise move on Dec. 7, 2015, the San Leandro City Council voted to expand their current Rent Review ordinance to apply to single family homes and condominiums. A final decision was scheduled for  Dec. 21 , but after testimony from tenant advocates and property owners, the council ultimately decided to delay taking action. TODAY, the council will make a final decision on the expanded ordinance. If single family homes and condos are included it could place a burden on property owners, unintentionally cause rents to increase and inspire other communities to consider rent control ordinances. While city staff are recommending to keep single family homes and condos out of the ordinance we anticipate tenant advocates and at least two city council members will work to have the ordinance cover all residential units.   If you manage rental property in San Leandro, particularly single family homes or condos, please attend the city council meeting TODAY!
Read more