The maximum loan limits for Federal Housing Administration (FHA) backed loans is currently at $625,500 (1-unit homes) in high-cost areas, which is the same as it was in 2014. Loan limits in designated areas are higher for multi-unit properties, and the popular FHA Streamline Refinance will keep its cap at $729,750.
In low-cost housing areas, the FHA will maintain the standard loan limits at $271,050, and stated that they will begin focusing more on lower income borrowers, opposed to high income earners looking to take advantage of low mortgage rates and down payment requirements.
These loan limits were lowered in 2014 in order to meet the response to the drop in home values nationwide and to help more borrowers with affordable loans. According to FHA Commissioner Carol Galante, “Implementing lower loan limits is an important and appropriate step as private capital returns to portions of the market and enables FHA to concentrate on those borrowers that are still underserved.”
2015 Standard/High-Cost FHA Loan Limits
The ceiling (i.e. maximum loan limit) varies by county, and if you’re shopping for an FHA loan, it’s crucial to make sure your desired home fits within these designated guidelines. Designated high-cost areas apply to approximately 70 metropolitan areas, including Los Angeles, California; New York City, New York; as well as the District of Columbia/Washington D.C. Below are the minimum to maximum loan limits in 2014:
- 1-unit: $271,050 up to $625,500
- 2-unit: $347,000 up to $800,775
- 3-unit: $419,425 up to $967,950
- 4-unit: $521,250 up to $1,202,925
2015 Special Exceptions for Certain States
To help offset construction costs, the FHA will offer special exception loan limits in Hawaii, Alaska, Guam, and the U.S. Virgin Islands which are as follows:
- 1-unit: $938,250
- 2-unit: $1,201,150
- 3-unit: $1,451,925
- 4-unit: $1,804,375
2015 FHA Streamline Refinance Loan Limits
The FHA Streamline Refinance has been a very popular options for existing FHA borrowers. This allows homeowners to refinance into today’s low rates without having to go through the income, credit, and employment verification process, which as you know is required for virtually any type of refinance.
Under the FHA Streamline Refinance, homeowners must have made all payments within the last 12 months and can only have one late payment during this time. In addition, the refinance must provide a “Net Tangible Benefit,” or simply a monthly payment reduced by five percent or more. Loan limits in 2014 will remain at:
- 1-unit: $729,750
- 2-unit: $934,200
- 3-unit: $1,129,250
- 4-unit: $1,403,400
2015 Reverse Mortgage – Home Equity Conversion Mortgage (HECM) Loan Limits
The maximum loan (claim) amount for the FHA-insured HECM will remain unchanged at $625,500. Loan limits for this special financing product will depend on the current property value, borrower’s age, and current mortgage rates. This special loan program is designed for homeowners, age 62 and older, to borrow against the equity they’ve acquired. No repayment is due until the homeowner decides to reside elsewhere.