2009 FHA Loan Limits Announced

by Peter G. Miller
November 10th, 2008

The new FHA mortgage limits for 2009 have been announced by HUD.

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:


___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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20 Responses to “2009 FHA Loan Limits Announced”

  1. Angela Kea Says:

    what are the documents i need before i sign up for a loan with fha?

  2. Mary White Says:

    What is the criteria for being able to obtain an FHA Loan. Is it available for refinance?

  3. Karen Wallace Says:

    for getting a FHA loan, what is going to be the required score to botain the loan. Most people’s credit was lowered when they lost and job or if their situation changed.

  4. Dee Dee Says:

    I am looking to buy a home or townhouse. I am a firt time home buyer. I would like to apply for the $8.500.00 stimulus to go towards my down payment. Where would I apply and what other information do I need to get started?

  5. Peter G. Miller Says:

    Dee Dee –

    It’s an $8,000 tax credit, not $8,500.

    Please take a look at the IRS page for the tax credit to get information about how to make a claim.

  6. Beth Says:

    I applied for pre-approval through Wells Fargo since they own the home that I am interested in. I do not have the best credit. I had previously been pre-approved through a different mortgage company. However, yesterday, Wells Fargo told me that as of yesterday my median credit score had to be in the 600′s. I do have one credit score in the 600′s but they wont accept that. Is this something new with all FHA loans or justr Wells Fargo?

  7. J. L. Says:

    Does anyone know if these limits will change any time soon with Obama’s stimulus package?

  8. Omar Kenney Says:

    J.L. – Nobody knows. I’d guess that there will not be any loan amount increases for FHA Loans.

    Dee Dee – This is a Tax credit. You must purchase the home before you get the credit. You can however amend your 2008 taxes and the IRS will send you your credit this year(2009) but only after you’ve purchased the property.

    Karen – Generally 620 in the minimum credit score needed to obtain FHA financing.

    Mary White – FHA financing is available up to 97.5% on a refinance for qualifying borrowers.

  9. Kim Says:

    Am I able to request that the seller pay the closing costs?

  10. M lee Says:

    What living reserves are required of the borrower
    1month of living expenses or more?

  11. Peter G. Miller Says:

    Kim –

    Yes. What you are looking for is called a “seller contribution.” Under FHA rules you can get a seller contribution equal to as much as 6 percent of the purchase price. Note that you still need money for the down payment.

  12. Peter G. Miller Says:

    Mr. Lee –

    If you buy a property with one or two units then there is no reserve requirement. If you buy with three or four units then you must have reserves equal to three monthly payments.

  13. Ian L. Says:

    FHA loan limit in my area is $292,500. I have $20,000 to put down. Plus i heard that I could apply the $8,000 stimulus for first time home buyers in advance to the purchase of the house. Does this mean I can buy a house that costs $320,500? Thanks.

  14. Carlos Says:

    as a first time home buyer can i get a home with no money down??

  15. Chad (Mortgage Consultant) Says:

    It is very difficult to find lending at 100% unless your a Veteran. Next to impossible

  16. Judith Marrero Says:

    My husband has been pre-approve for a 100,000 dollars loan, however I can’t get a house no where near that price in NYC. I’m willing to relocate no farther than a hour away of commute from my husband job. With the economy and the lack of work, my husband needs to keep his job inorder for us to survive and pay a mortgage. oh, did I mention the fact that we are first time home buyers. Our problem is that there is only one income and our family composition is of 5 people and we are what the bank consider a high risk. We are really interest in applying for the $8000. stimulus yet where in NYC would I find a house under 100,000 dollars? Please help share some insight.

  17. Adena Says:

    I discharged a chapter 13 bankruptcy in March and I have a credit score of 659. As a first time homebuyer how long after bankruptcy do I have to wait to be approved for an FHA home loan?

  18. james butler Says:

    I am selling my home to an fha (rural home loan) qualified buyer. Can anyone tell me when the funds are to be appropriated. IF it varies by state, is it when that state ratifies their state budget? if so, I am asking for information as to when dispursement of fha (rural loan) money will be made to the state of North Carolina, and when dispursment is expected.

  19. brandicburton Says:

    What does your median credit score need to be to purchase a home with FHA

  20. Danelle Says:

    The rural home loan James B. is referring to is the USDA loans. They are similar to VA loans in that they are for ZERO down and LOW interest rates. The home does have to be in a qualified rural area and there is a limit on household income. Go to USDA’s website for more info. We were looking in to this loan but we made just a little to much to qualify for this GREAT opportunity. Back to the FHA loan drawing board for us. We should know by the weeks end if we qualify for the 3.5% down FHA loan. Keep your fingers crossed for us! =)

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