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Conforming and FHA Loan Limits for 2014

The Federal Housing Finance Agency (FHFA) recently announced loan limits for Conforming loans and FHA loans. Conforming loans are backed by Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. FHA loans are insured by the Federal Housing Administration, a part of Housing and Urban Development (HUD)… [read more]

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The Federal Housing Finance Agency (FHFA) recently announced loan limits for Conforming loans and FHA loans. Conforming loans are backed by Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. FHA loans are insured by the Federal Housing Administration, a part of Housing and Urban Development (HUD).

fhalimits

Conforming Loan Limits for 2014:

Conforming loan (also called Conventional loan) limits for 2014 remained the same as 2013 with following base loan limits:

  • One Unit: $417,000
  • Two Units: $533,850
  • Three Units: $645,300
  • Four Units: $801,950

Some high cost counties will have loan limits over the base limits. The maximum loan limit for such high cost counties will stay at $625,500 for 1-unit properties in 2014. Most of the counties in the San Francisco Bay Area and counties like Bronx and Dutchess in New York will have the maximum loan limit of $625,500. For high cost counties, the limits are as listed below:

  • One Unit: $625,500
  • Two Units: $800,775
  • Three Units: $967,950
  • Four Units: $1,202,925

These limits do not apply to Alaska, Guam, Hawaii and the US Virgin Islands. For a list of 2014 loan limits for all counties in the country, visit Fannie Mae’s website.

FHA Loan Limits for 2014:

While Conforming loan limits stayed the same, FHA slashed its loan limits for a ton of counties. Most importantly, FHA slashed the maximum loan limits on 1-unit properties by more than $100,000. See below the FHA loan limits for 2014 for low cost areas, also called “Floor Limits.” These remain the same as 2013:

  • One Unit: $271,050
  • Two Units: $347,000
  • Three Units: $419,425
  • Four Units: $521,250

The 2014 FHA loan limits for high cost areas were reduced to $625,500 from the current $729,750 for one-unit properties. See details below:

  • One Unit: $625,500
  • Two Units: $800,775
  • Three Units: $967,950
  • Four Units: $1,202,925

These loan limits do not apply to Alaska, Hawaii, Guam and the US Virgin Islands.

Streamline Refinance Mortgages:

FHA Streamline refinance transactions without an appraisal are not subject to these limits. Borrowers applying for this loan program will be able to refinance their current loan balance if they meet other eligibility requirements.

HECMs:

Maximum Home Equity Conversion Mortgages (HECM, also called Reverse Mortgage) loan limits remain the same for 2014 at $625,500.

To look up FHA loan limits for 2014 for any county in the country, go to visit the official HUD website.

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Amazon.com Best-selling author, Shashank Shekhar (NMLS 8176) is a mortgage lender with Arcus Lending, offering loans for home purchase and refinance. Shashank has been featured as a mortgage expert on Yahoo! News, ABC, CBS, NBC and FOX. He has been named "Top 40 under 40" most influential mortgage professionals in the country.