FHA Loan Limits are defined for the home buyers and are county specific. In the year 2008 these FHA loan limits for the home loan were raised as per the Economic Stimulus Act of 2008 owing to the high rates of the houses. This was done as a balancing act to stabilize the real estate market. But again these FHA loan limits in 2009 have been revised and bought back.
FHA Loan Limit History
The Department of Housing and Urban Development Authority (HUD)
The Department of Housing and Urban Development Authority (HUD) has the major role in revising the FHA loan limits and the guidelines are according to the Housing and Economic Recovery Act of 2008. The Federal Housing Finance Agency set the house price index which is that used to form the FHA mortgage limits. Along with this, the government data and present commercial information is also used to determine the FHA loan limit in the particular area. As the FHA loan limits are area specific, so the most expensive area will have high mortgage limit whereas the region that has less housing rate will have the low FHA loan limits. These limits are designed at county level. So this should be checked before getting the home loan. For this either contact the loan officer or check it online.
FHA Loan Limit Guidelines
Any home that is in the metropolitan statistical area is an exception to the county rule of FHA mortgage limits. The loan limit for that is set as per the highest price of the home in that metropolitan area. Along with the location criteria, every FHA loan limit has its own rule and regulation so it is also very important to understand those completely. Like if you already have an FHA loan then you cannot apply for the new loan but yes of course there is refinancing option but that too consider the first loan. Any borrower whose earning is more than the prescribed FHA loan limit can be denied of these loans.
Requirements for FHA Loan Limit Calculator
The FHA loan limit calculator is also available online in the website of HUD. To find out the FHA loan limit you need to provide the following information:
County / County Code
MSA Name (Metropolitan Statistical Name)
Limit Type: FHA Forward, HECM, Fannie Mae and Fredrick Mac
To find out the FHA loan limits all or only known information can be provided. This will give you the FHA loan limit in a particular area. Therefore according to the FHA loan limits borrower cannot get more than the prescribed amount.