FHA mortgage limits reduced

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What goes up must come down“… a common phrase that fits many aspects of life. Today, it relates to the mortgage industry as the Department of Housing and Urban Development recently dropped the maximum loan amounts for FHA loans.

The maximum loan amounts for FHA loans are determined by an evaluation of home values, and the limit is not a flat rate like the $417,000 mark set for single family homes on conventional loans. FHA limits are set on a county-by-county basis, and you can search for those limits for every state and county using the link below:

https://entp.hud.gov/idapp/html/hicostlook.cfm

Why the reduction in the limit? During the housing boom, home values went up. When prices kept going up, HUD increased the maximum loan amount. Now that home values have decreased, so has the FHA limit.

For the majority of the Atlanta metro area, the maximum FHA mortgage limit for a single family residence decreased from about $346,000 to $320,000. That is roughly a 7% decrease. The one Atlanta metro area exception of this drop is Hall County whose mortgage limit fell all the way to $271,000.

In the grand scheme of things (at least in the Atlanta metro area), this isn’t an earth-shattering change. That may not be the case across the U.S (depending on your county), but it isn’t like the drop in the FHA mortgage limit has fallen by the same percentage as housing prices across the United States. For the most part, the mortgage limit change simply reflects current events in the housing market.

To find out more about your county, use the link provided in this post or contact your local mortgage consultant. Buying or refinancing in Georgia? I can help you get started on your new loan. Contact me and we’ll take it from there.

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