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FHA Loan Limits for 2018

John Thomas December 8, 2017 Tags:
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FHA Loan Limits for 2018

The Federal Housing Administration announced FHA Loan Limits for 2018 effective with FHA case numbers assigned on or after January 1, 2018.  The Minimum maximum FHA loan limit is increasing from $275,665 to $294,515  which is a 6.8% increase in the floor loan limit for FHA loans.  Do you need to get approved for a FHA Loan?  Call 302-703-0727 or APPLY ONLINE

Consistent with the Federal Housing Finance Agency (FHFA) increases to their conventional loan limits for 2018, FHA increased the ceiling in high cost areas of the county to $679,650 from $636,150.

The National mortgage loan limit for a Reverse Mortgage which is a Home Equity Conversion Mortgage (HECM) will increase to $679,650.  This is for the whole county as FHA’s current regulations do not allow loan limits for reverse mortgages to vary by county or MSA.

HUD stated that most areas in the country will see an increase in the loan limits in the coming year, which is more than 3,000 counties across the country.  The announcement from HUD can be read here: https://www.hud.gov/press/press_releases_media_advisories/2017/HUDNo_17-110

How are FHA Loan Limits Set by HUD?

The National Housing Act requires FHA to set Single Family forward FHA loan limits at 115 percent of the median house price, subject to a floor (minimum) and a ceiling (maximum) on the limits.  FHA uses Metropolitan Statistical Area and counties to calculate the forward mortgage limits.  For Example below are the new loan limits set for each county in Delaware:

County                                   Maximum FHA Loan Limit 1 Unit

New Castle County                 $385,250

Kent County                             $294,515

Sussex County                         $316,250

The FHA Floor loan limit which is the minimum National loan limit is set at 65% of the national conventional loan limit of $453,100 for 2018.  This Floor loan limit applies to areas where 115 percent of the median home price is less than the floor limit.  For example Kent County Delaware 115% of the median home price is below the floor so the maximum FHA loan limit is set to $294,515.

 

FHA Loan Limit Increase

How do you look up the FHA Loan limit for 2018?

You can look up the FHA Loan limit for 2018 by state, county, or Metropolitan Statistical ARea (MSA) at the HUD website – FHA Loan Limit Look Up

 

How do you Apply for a FHA Loan?

You can apply for a FHA Loan for the purchase or refinance of a home by calling 302-703-0727 or you can get started online at the following link: APPLY ONLINE

 

About John Thomas

John Thomas and his team are long-time Delaware natives. They know the local real estate market as well as they know the loan products that help them serve it. Dedicated to helping first-time buyers; the John Thomas Team are experts on first-time buyer loan programs (FHA, VA, USDA) and conduct monthly first-time buyer seminars that have been attended by more than 3000 Delaware buyers.

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