December 6, 2016
In a recent blog post, we discussed the news of FHA loan limits increasing in 2017. Every year the FHA/HUD official site releases the data on FHA loan guaranty limits for the new year. These limits can be affected by legislation, housing market conditions, and other factors so an annual update (at the very least) is required to establish limits for the new year.
How much with FHA loan limits increase in 2017? The FHA issued a mortgagee letter (2016-2017) that announces both the new limits for low-cost areas and high cost areas alike. According to the FHA official site, the low-cost area FHA mortgage loan guaranty limits for 2017 are set as follows as described in the mortgagee letter:
“The FHA national low cost area mortgage limits, which are set at 65 percent of the national conforming limit of $424,100 for a one-unit Property, are, by property unit number, as follows:
One-unit: $275,665
Two-unit: $352,950
Three-unit: $426,625
Four-unit: $530,150”
For high-cost areas, the FHA official site has the following information:
“The FHA national high cost area mortgage limits, which are set at 150 percent of the national conforming limit of $424,100 for a one-unit Property, are, by property unit number, as follows:
One-unit: $636,150
Two-unit: $814,500
Three-unit: $984,525
Four-unit: $1,223,475”
There is also a section that addresses special exceptions for Alaska, Guam, Hawaii, and the Virgin Islands:
“Mortgage limits for the special exception areas of Alaska (AK), Hawaii (HI), Guam (GU) and the Virgin Islands (VI) are adjusted by FHA to account for higher costs of construction. These four special exception areas have a higher ceiling as follows:
One-unit: $721,050
Two-unit: $923,050
Three-unit: $1,115,800
Four-unit: $1,386,650”
Speak to your loan officer to discuss how the FHA loan limits in 2017 may affect your transaction. The information listed in this blog post is for FHA mortgages with case numbers assigned on or after 1 January, 2017.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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