HUD ANNOUNCES NEW FHA LOAN LIMITS TO TAKE EFFECT JANUARY 1ST
The Department of Housing and Urban Development (HUD) announced that it will implement new FHA single-family loan limits on January 1, 2014, as specified by the Housing and Economic Recovery Act of 2008 (HERA). Due to the expiration of the authority granted in the Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112-55), the calculation of FHA’s single family loan limits is altered, resulting in a decrease in the calculation of high cost area limits and the loan limit “ceiling” for case numbers assigned on or after January 1, 2014 through December 31, 2014. The expiring authority had required the maximum loan limits to be calculated as the higher of the limits established under section 203(b) of the NHA or the limits established under ESA (Public Law 110-185). ESA used higher multiples than the NHA in establishing limits in high cost areas (125 percent versus 115 percent) and in establishing the national FHA loan limit “ceiling” as a percentage of the conforming loan limit (175 percent versus 150 percent).
The following table illustrates FHA loan limits for low cost and high cost areas.
|
Property Size |
Low Cost Area “Floor” |
High Cost Area “Ceiling” |
| One Unit | $271,050 | $625,500 |
| Two Unit | $347,000 | $800,775 |
| Three Unit | $419,425 | $967,950 |
| Four Unit | $521,250 | $1,202,925 |
Maricopa County falls under the Low Cost Area “Floor” section, making the FHA Loan Limit $271,050. This is effective for all case numbers pulled on or after January 1, 2014.
If you have FHA buyers looking to exceed the new Loan Limit of $271,050, now is the time to get a contract secured. Your Lender will need to pull the FHA case number by DECEMBER 31, 2013.
Please contact us for additional information or details.
Tags: Buyers, FHA, Market Condition
