December 10, 2012
The FHA has released maximum loan information for 2013.
According to Mortgagee Letter 12-26, “These limits apply to forward mortgages insured under the following sections of the National Housing Act (NHA): 203(b) (FHA’s basic 1-4 family mortgage, including condominiums), 203(h) (mortgages for disaster victims), and 203(k) (rehabilitation mortgage insurance).”
The FHA says the new limits are applicable for January 1, 2013 through December 31, 2013. The FHA Floor and Ceiling loan limits “will remain the same as those that were in effect as announced in ML 11-39” last year. The FHA also announced in this mortgagee letter that the “maximum claim amount and loan limits for Home Equity Conversion Mortgages” will remain at $625,500.
There are two areas borrowers should know about when it comes to FHA loan limits–the “floor” and the “ceiling”. According to the Mortgagee Letter, “The FHA national loan limit “floor” remains at 65 percent of the national conforming limit (which remains at $417,000 for a one unit property). The minimum FHA loan limits (the “floor”) by property size for 2013 are as follows:
- One-Unit $271,050
- Two-Unit$347,000
- Three-Unit $419,425
- Four-Unit $521,250
For areas not listed in not listed in either Attachment I or II (the FHA loan limits) the FHA loan limits are set at the national floor.” (See the Mortgagee Letter for Attachment I and II.)
The FHA loan limit “ceiling” is described in the Mortgagee Letter, which states:
“For areas designated as high-cost under the ESA, the maximum FHA loan limits (ceiling) by property size for the effective period stated in this mortgagee letter are as follows:
- One-Unit $729,750
- Two-Unit $934,200
- Three-Unit $1,129,250
- Four-Unit $1,403,400
Many areas are eligible for loan limits between the national FHA floor and ceiling based on area median home prices. Any area where the loan limit exceeds the “floor” is defined as a high-cost area. In such areas, the limits shall be set at the higher of the ESA-calculated loan limits for 2008 or the NHA calculated loan limits for loans with credit approved during the effective period.” You can learn more about FHA loan limits for 2013 and view a list of high-cost counties at the FHA official site.
Do you have questions about FHA loans? Ask us in the comments section.
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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