FHA Loan Limits to Increase in 2017
On Dec. 1, 2016, the Federal Housing Administration (FHA) released its 2017 Loan Limits. In high-cost areas the FHA national loan limit “ceiling” will increase to $636,150 from $625,500. The “ceiling is set at 150 percent of the national conforming limit of $424,100, which increased from $417,000 this year and was the first increase in the national conforming limit since 2006. FHA will also increase its “floor” to $275,665 from $271,050. The “floor” is set at 65 percent of the national conforming limit of $424,100. The standard loan limit for lower cost metropolitan areas will increase from $271,050 to $275,665. The increases are due to a rise in housing prices across the country. Loan limits increased in 2,948 counties, loan limits remain unchanged in 286 counties and no counties faced a loan limit decrease.
An explanation of FHA’s loan limit calculations, FHA loan limit “look up” links and appeal information are provided in FHA’s Mortgagee Letter 2016-19 and on the FHA Loan Limits Information Page. Any community that wishes to contest its loan limit must submit an appeal to the Santa Ana Homeownership Center no later than January 3, 2017.
Additionally, the maximum claim amount for FHA-insured Home Equity Conversion Mortgages (HECMs), or reverse mortgages, will increase to $636,150. This amount is 150 percent of the national conforming limit of $424,100. Details are provided in FHA Mortgagee Letter 2016-19. See FHA Press Release for more information.
Courtesy of the National Association of REALTORS