Sunday, November 16, 2008

2009 FHA Loan Limits Announced

Actually there are three sets of limits, a limit for homes in lower cost areas (the “floor”), limits in “higher-cost” areas and limits for areas outside the continental United States: The limits look like this:

Floor

  • One-Unit — $271,050
  • Two-Unit – $347,000
  • Three-Unit — $419,400
  • Four-Unit — $521,250


Higher-Cost Areas

  • One-Unit — $625,500
  • Two-Unit — $800,775
  • Three-Unit — $967,950
  • Four-Unit — $1,202,925

Alaska, Guam, Hawaii and the Virgin Islands

  • One-Unit — $938,250
  • Two-Unit — $1,201,150
  • Three-Unit — $1,451,925
  • Four-Unit — $1,804,375

The FHA loan limits are related to the conventional loan limit which is announced each year by Federal Housing Finance Agency. For 2009 the conventional loan limit will be $417,000, unchanged from 2008.

Which FHA loan limit applies to a property you want to finance or refinance? To answer that question check with a lender. Do not go house hunting until you’re certain which loan limit applies in your situation.

It’s important to check with lenders because the definition of a “high cost” area can change. That is, lenders in a lower-cost area can appeal to HUD to be redefined as a “high cost” housing area and thus qualify for larger FHA loans.

HUD does have an FHA loan limits page online, however borrowers will get far more information from lenders.

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