Thursday, September 25, 2014
2014 FHA Loan Limits for High Cost Areas
FHA Loan Limit Changes Effective January 1, 2014 Loan limits for the country's highest-cost areas were reduced January 1, 2014. The 2014 national maximum "ceiling" loan limit for a one-unit property in a high-cost area was reduced from $729,750 to $625,500. The current standard minimum "floor" loan limit for a one-unit property in a low-cost area will remain unchanged at $271,050. Loan limits in other areas have also changed, with both increased and decreased loan limits in different areas. In Special Exception Areas (Alaska, Guam, Hawaii and the U.S. Virgin Islands), the maximum "ceiling" loan limit for a one-unit property will be reduced from $1,094,625 to $938,250. The following illustrates FHA loan limits for low-cost and high-cost areas. Property Size Low-Cost Area "Floor" High-Cost Area "Ceiling" One Unit $271,050 $625,500 Two Units $347,000 $800,775 Three Units $419,425 $967,950 Four Units $521,250 $1,202,925 For multiple-unit loan limit adjustments in Special Exception Areas, download the FHA's Mortgagee Letter. FHA loan limits are determined by the median home price in each county. Approximately 650 counties have lower limits as a result of this change in the governing law. FHA loans are extremely popular and currently account for about 25% of all loans used to purchase homes. With an FHA loan, buyers can put down as little as 3.5%. FHA loans are available as both fixed-rate loans and adjustable-rate loans.