Some good news from the Federal Housing Administration (FHA) today as they announced the new 2020 FHA loan limits. Most of the nation will see an increase, according to a new letter from HUD.
FHA calculated 2020’s forward mortgage limits based on the median home prices in accordance with the National Housing Act. Loan limits are determined by county and are set as a percentage of national conforming loan limits, which were announced by the Federal Housing Financial Agency last week.
The FHA loan limit in most of the country for one-unit properties will be $331,760 — 65% of the national conforming loan limit of $510,400. That’s up nearly $17,00 from last year.
For two-unit properties, the limit is $424,800. Three-unit properties have a limit of $513,450, while four-unit properties have a limit of $638,100.
Note that HUD terms this $331,760 limit the “floor,” since it applies to the lowest-cost tier of counties nationwide. It is, however, the maximum FHA loan amount for each of those counties.
For high-cost counties, the FHA loan limit for one-unit properties is set at $765,600, or 150% of the national conforming limit. That’s up $39,075 from the FHA loan limit last year.
For two-unit properties, that limit in 2020 increases to $980,325; for three-unit properties, it is set at $1,184,925; and for four-unit properties, the limit is $1,472,550. HUD terms this limit the “ceiling,” since it is the upper bound for maximum loan limits nationwide.
Buyers can search each county FHA mortgage limit here
|NUMBER OF UNITS||BASIC FHA LOAN LIMITS (Non High Cost)|
More: Fannie Mae also announced increased conforming loan limits for 2020.
Also note that there are a few select locations where FHA mortgage caps are determined differently from the above calculations. The limits for these special locations, including Alaska, Hawaii, Guam and the U.S. Virgin Islands, are adjusted by the FHA to account for higher construction costs. For these locations, the one-unit FHA limit is $1,148,400 and goes even higher for muti unit properties.
In decreasing housing markets where home prices have dropped, the FHA decreased loan limits in 11 counties located in Idaho, Minnesota, New York, North Carolina, Tennessee, Texas, and Virginia.
Please contact us today to learn more about FHA loans, we are available 7 days a week to serve you.