Monday, December 9, 2013 - Article by: Joe Metzler, MLO. NMLS #274132 - Mortgages Unlimited, Inc -
Looking to get an FHA Loan in 2014 and beyond? HUD ( Department of Housing and Urban Affairs) announced last week it will be lowering the maximum loan amount for FHA loans (Federal Housing Administration). The new limits will take effect Jan. 1.
Each county across the county has a maximum loan limit which is tied to the areas average income. The standard loan limit for areas with relatively low housing costs will stay at its current level, $271,050. However, the limit for areas with the highest housing costs will be reduced by more than $100,000, from $729,000 to $625,500.
To learn what is available in your area, use this FHA Loan Lookup Tool. Be sure to click the CY2014 for the new limit
The current limits have been in place for the past six years, and were originally set to lower in 2009, but were left alone because of the real estate crash. Loan limits for
FHA-insured reverse mortgages will remain the same at a maximum amount of $625,500, with actual loan limits based on the value of the property, current interest rates and the borrower's age.
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