Do I live In A “High Cost” Area For Mortgage Financing?

by Peter G. Miller
January 9th, 2008

What is a “high cost” area if you want an FHA mortgage?

That’s a question raised by Jim, and the practical answer is this:

Under today’s system, a single-family home in a “high cost” area can get an FHA mortgage equal to 87 percent of the conventional loan limit, or $362,790. The ceiling in “low cost” areas is 48 percent of the conventional loan limit, or $200,160. The limits are 50 percent higher in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

But, which areas are high and which are low? The answer seems to change because I see notices from HUD where low-cost areas have been redefined into high-cost communities. For this reason, the best approach is to go to the FHA Loan Limit Page and check the community where you want to finance or refinance.

Also, of course, check with local lenders.

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