HUD Says FHA Loan Limits to Increase in More than 3,000 Counties

The Federal Housing Administration yesterday announced its new schedule of loan limits for 2018, with most areas in the country to experience an increase in loan limits in the coming year.  

These loan limits are effective for FHA case numbers assigned on or after January 1, 2018.   I

n high-cost areas of the country, FHA’s loan limit ceiling will increase to $679,650 from $636,150. FHA will also increase its floor to $294,515 from $275,665. Additionally, the National Mortgage Limit for FHA-insured Home Equity Conversion Mortgages (HECMs), or reverse mortgages, will increase to $679,650 from $636,150.  

FHA’s current regulations implementing the National Housing Act’s HECM limits do not allow loan limits for reverse mortgages to vary by MSA or county; instead, the single limit applies to all mortgages regardless of where the property is located.  

HUD said due to robust increases in median housing prices and required changes to FHA’s floor and ceiling limits, which are tied to the Federal Housing Finance Agency’s increase in the conventional mortgage loan limit for 2018, the maximum loan limits for FHA forward mortgages will rise in 3,011 counties. In 223 counties, FHA’s loan limits will remain unchanged. 

By statute, the median home price for an MSA is based on the county within the MSA having the highest median price.  It has been HUD’s long-standing practice to utilize the highest median price point for any year since the enactment of HERA.  

FHA’s Mortgagee Letter on 2018 Forward Mortgage Limits can be found at FHA’s Mortgagee Letter on 2018 Home Equity Conversion Mortgage Limits can be found at