New FHA loan limits were recently announced, which is good news for home buyers and those looking to refinance their current loans. If you're new to loan limits and not sure why this is exciting news, here is a quick primer:
When you apply for an FHA loan, there's a limit on how much you can borrow before it's considered a jumbo loan, disqualifying you from all the FHA benefits. The Department of Housing and Urban Development (HUD) recently increased the loan limits on FHA loans for most of the U.S., which is an excellent thing for home buying hopefuls across the country.
The conventional loans that Fannie Mae and Freddie Mac back have a standard loan limit. VA loan limits follow the same guidelines, but FHA loan limits are more complicated.
That's because the FHA uses two factors to define their lending limits. The first factor is the area you live in, and the other is the type of property you're purchasing. It typically works out that if you live in a low-cost area, the "floor" will be lower. In contrast, high-cost areas have a higher "ceiling."
The FHA defines high-cost areas by averaging the income level and the average cost to purchase a property. They also take into consideration the market demand.
The lending limits also differ depending on the type of property. A two-unit property, for example, will have a higher limit than a single-family home.
The FHA loan limits for 2021 range from $356,362– $822,375. However, keep in mind that ceiling amounts vary by county. For example, the max loan amount on a single-family home in a low-cost county is $356,362, while the max in a high-cost county is $822,375.
One way to determine your area's loan limit is to use the search feature on HUD's website. You can also use their search feature to find out the local limits on Fannie Mae and Freddie Mac loans.
Of course, your agent and our office are available to assist you with this information.
The FHA also backs up conforming home equity conversion mortgages, more commonly known as reverse mortgages. Unlike the FHA loan mentioned above, reverse mortgages have one set limit across the U.S., which is now $822,375 in 2021, up from $765,600 in 2020.
FHA loans have some of the best terms. And when we combine these new higher limits with low credit requirements and a low down-payment, you can see why home shoppers everywhere are thrilled.
We're thrilled too! If you're looking to buy or refi your home with an FHA mortgage, you can get started by filling out the pre-qualification questions found conveniently on our site.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 227262
1 Vantage Way Ste E240
Nashville, TN 37228
Phone: (615) 915-1347
Not a commitment to lend. Additional terms and conditions may apply. USA Lending dba DAS Acquisition Company, LLC is not affiliated with or endorsed by the HUD, FHA, VA, the government of the United States, or any federal, state or local government agency. Corporate address: 12140 Woodcrest Executive Drive, Suite 150, St. Louis, Missouri 63141. Telephone: (314) 628-2000, Toll Free: (888) 250-6522. For complete license information: http://www.nmlsconsumeraccess.org
USA Lending strives to ensure that its services are accessible to people with disabilities. USA Lending has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
USA Lending makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows volunteermortgagegroup.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
USA Lending accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
USA Lending continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on USA Lending website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on USA Lending website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: firstname.lastname@example.org