FHA Home Loan Limits Have Increased for 2018!

How This Helps You

The new loan limits reflect the increase in home prices across the country, making it easier for more borrowers to qualify for financing and achieve the goal of homeownership.

The Background

Housing prices are on the rise, and the FHA is required by the National Housing Act to maintain limits at 110% of median home prices (calculated using Metropolitan Statistical Area and county information).

The decision to raise loan limits is a big jump for the FHA, which increased loan limits in only 188 counties in 2016, and in a total of 2,948 counties in 2017. This year, 3,011 counties will benefit from higher loan limits. Only 223 counties will see no change.

FHA loan limits are tied to conforming loan limits set by the Federal Housing Finance Agency, which is also increasing loan limits for 2018.

The Numbers

In high-cost areas, ceiling FHA loan limits for one-unit properties will increase from $636,150 to $679,650. The floor will also increase from $275,665 to $294,515 in 2018. As mandated by the Housing and Economic Recovery Act, these new limits represent 150% and 65% of the national conforming loan limits, respectively.

Reverse mortgages will also see an increase to $679,650 for all areas.

For a list of loan limits across the country, visit HUD.gov.

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