The Federal Housing Administration-loan limits for 2007 have gone into effect.
The maximum single-family loan amount the FHA will insure for properties in high-cost areas will remain at the 2006 level of $362,790 for loans closed on or after Jan. 1, 2007, according to a mortgagee letter by the Department of Housing and Urban Development. In low-cost areas, the loan limit is also unchanged from last year's $200,160.
The FHA loan ceiling is set at 87 percent of the Freddie Mac loan limit, which was recently announced at $417,000, also unchanged from 2006, according to the letter. The conforming limit is reportedly based on the October-to-October change in the average house price in the Monthly Interest Rate Survey of the Federal Housing Finance Board, which reported the average price declined to $306,258 from $306,759 over that period.
The two-, three- and four-unit maximum loan amounts in high-cost areas respectively remained at $464,449, $561,411 and $697,696, HUD reported.
In Alaska, Guam, Hawaii and the Virgin Islands, where the maximum is adjusted up to 150 percent of the above ceilings to account for higher costs of construction, the single-family loan limit remains at $544,185, HUD said. For two, three- and four-unit properties they are unchanged at $658,106, $799, 568 and $922,578, respectively.
Loan limits for reverse loans, or Home Equity Conversion Mortgages, are derived from the lower of the appraisal amount or FHA mortgage limit for the area, according to HUD. Reverse limits are effective for all loans closed after Jan. 1, 2007.