The Federal Housing Administration announced its new loan limits for 2019, and it looks like most of the country will see an increase.
In high-cost areas, the new FHA loan limit ceiling increased to $726,525, up from $679,650 in 2018. The FHA will also increase its floor to $314,827, up from 2018’s $294,515.
These new loan limits will be effective for FHA loans assigned on or after January 1, 2019.
FHA is required by the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008, to set single-family forward loan limits at 115% of median house prices, subject to a floor and a ceiling on the limits. FHA calculates forward mortgage limits by Metropolitan Statistical Area and county.
FHA’s 2019 minimum national loan limit, or floor, of $314,827 is set at 65% of the national conforming loan limit of $484,350. This floor applies to those areas where 115% of the median home price is less than the floor limit.
Any areas where the loan limit exceeds this floor is considered a high-cost area, and HERA requires FHA to set its maximum loan limit “ceiling” for high-cost areas at 150% of the national conforming limit.
CLG Local Examples:
|1 Unit||Bucks County, PA|
Chester County, PA
|1 Unit||Burlington County, NJ|
Camden County, NJ
Gloucester County, NJ
|1 Unit||Ocean County, NJ|
Somerset County, NJ
To learn how this change impacts your area and your buying power, contact a CLG mortgage expert.