Mortgage Daily Logo
mortgage news from industry experts

FHA Limits May Rise in March

FHA Limits May Rise in MarchHUD estimates early March

February 21, 2008


Borrowers may be able to apply in March under the expanded loan limits for mortgages insured by the Federal Housing Administration.

The higher limit becomes effective for all borrowers who apply after the U.S. Department of Housing and Urban Development publishes the temporary maximum loan amounts, spokesman Lemar Wooley told in an e-mail message. HUD expects to publish the new limits in early March.

“FHA Loan limits will be 125 % of the median sales price for the area,” the spokesman stated.

In areas where the median home price is above $583,800, the maximum FHA loan limit will be $729,750, HUD indicated. In areas where the median price is below $216,840, the FHA limit will be $271,050.

“Think of it this way,” Wooley explained, “all FHA loans will fall in between $271,050 and $729,750.”

“FHA Loan Limits are based on the county in which the property is located, except that for properties located in metropolitan or micropolitan statistical areas, as determined by the Office of Management and Budget, the limit is set at that of the county with the highest limit within the metropolitan or micropolitan area,” he added.

H.R. 5140, the legislation lifting the limit, calls for the increased maximums to expire on Dec. 31, 2008.


FHA, Conforming Limits Boosted
President Bush has signed into law emergency legislation that will temporarily increase the conforming limit by 75 percent. In addition, the limit for loans insured by the Federal Housing Administration will also see a temporary boost.

next story

back to current headlines

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts