FHA Mortgage Guide

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:

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.

Check out these FHA resources for more information

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