FHA Loans: The 2019 Loan Limits
FHA (Federal Housing Administration) limits the amount the borrowers may receive on mortgage loans. These limits change yearly and are dependent on the location of the home that is purchased. The 2019 FHA mortgage loan limits range from $314,827 for lower-cost areas and up to $726,525 for high-cost areas.
The mortgage loam limits through FHA vary from location to location depending on the limitations placed by each country. Homes that are in higher-cost living areas will see a higher ceiling than those in lower-cost living areas as defined by country assessors.
2019 FHA Loan Limits
Just as prices in homes rise and fall with the housing market, so to do the FHA limits for mortgage loans for buying these houses. The FHA reassesses these limits each year and adjusts them accordingly. The limits often rise; however, on occasion, they may fall as does the housing market. On rare occasions, they may remain the same as the previous year. All new limits set by the FHA will start at the beginning of each year.
Loan limits for 2019 for single-family homes based determined by the median home price in a specific area. This means that loan amounts or mortgage limits for home loans can changed based on your metropolitan statistical area.
The FHA limits are set as the highest amount a borrower may receive for a home in the area in which they are looking. The assessment of low-cost or high-cost markets is set and regulated by the Department of Housing and Urban Development (HUD).
Borrowers should understand that the caps for their specific location will fall within these limitations, but not necessarily see the exact amounts. The range of limits is from $314,827 to $726,525 and may vary drastically depending on where in a state the home is. For example, someone buying a house in Witchita, KS. would see a higher loan limit than someone buying the exact same home in Independence, KS. because of the difference in market values in each location.
So what does this all mean? For home buyers, these limits mean that the home they are buying must fall within the FHA limits to be eligible for this type of mortgage loan. If you are unsure of the loan limits for your specific area, they can be found on the HUD website or by speaking to your financial lender.