FHA hikes loan limits for 2019 in most of US

by Francis Monfort17 Dec 2018

The Federal Housing Administration (FHA) has increased loan limits in most areas in the country, according to the agency's new schedule limits for 2019.

The new limits are effective for FHA case numbers assigned on or after Jan.1.

In high-cost areas of the country, the FHA’s loan limit ceiling will increase to $726,525 from $679,650. The FHA will also increase its floor to $314,827 from $294,515. Additionally, the national mortgage limit for FHA-insured Home Equity Conversion Mortgages (HECMs), or reverse mortgages, will increase to $726,525 from $679,650.

Due to robust increases in median housing prices and required changes to the FHA’s floor and ceiling limits, which are tied to the Federal Housing Finance Agency (FHFA)’s increase in the conventional mortgage loan limit for 2019, the maximum loan limits for the FHA forward mortgages will rise in 3,053 counties. In 181 counties, the FHA’s loan limits will remain unchanged.

The FHA is required by law to establish its floor and ceiling loan limits based on the loan limit set by the FHFA for conventional mortgages owned or guaranteed by Fannie Mae and Freddie Mac. The FHA’s 2019 minimum national loan limit, or floor, of $314,827 is set at 65% of the national conforming loan limit of $484,350. This floor applies to those areas where 115% of the median home price is less than the floor limit.