December 10, 2019
In 2019, the FHA and HUD announced higher loan limits, giving borrowers in most counties additional borrowing power to purchase, build, repair, or refinance an owner-occupied home.
The uptick in FHA loan limits for 2019 led some to believe that it might be possible to see another year of higher loan limits, while others speculated that higher limits may not be a trend, but simply a typical course correction for home loan limits.
Regardless of which camp 2020 borrowers were in back then, it seems there is another year to contemplate higher loan limits; the Department of Housing and Urban Development has released the FHA loan limits for 2020 and they are indeed higher in most areas.
The HUD announcement discussing the overall increase in the FHA loan limit for many counties includes mention that the housing markets with higher FHA loan limits in the new year is 75 pages long.
Only 11 markets saw an FHA loan limit rate decrease. Those markets include Orange County in New York, Lincoln County in Idaho, and Hood County in Texas.
2020 FHA Nationwide Loan Guaranty Limits
- FHA single unit mortgage floor= $331,760
- FHA single unit mortgage ceiling=$765,600
2020 FHA Loan Limits For Low-Cost Areas:
- 65 percent of the national conforming limit of $510,400
- One-unit: $331,760
- Two-unit: $424,800
- Three-unit: $513,450
- Four-unit: $638,100
2020 FHA Loan Limits For High Cost Areas
- 150 percent of the national conforming limit of $510,400
- One-unit: $765,600
- Two-unit: $980,325
- Three-unit: $1,184,925
- Four-unit: $1,472,550
2020 Special Exceptions Loan Limits for Alaska, Hawaii, Guam, and the Virgin Islands
- Adjusted by FHA to account for higher costs of construction
- One-unit: $1,148,400
- Two-unit: $1,470,475
- Three-unit: $1,777,375
- Four-unit: $2,208,825
The FHA loan limits you see here are effective for all FHA home loans with case numbers issued on or after 1 January 2020. These limits are not effective for any case number issued prior to 1 January 2020. Remember that these loan limits apply for forward mortgages and do not include rates for FHA Reverse Mortgages AKA FHA Home Equity Conversion Mortgages (HECM).
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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