The Federal Housing Administration (FHA) announced the 2016 Nationwide Forward Mortgage Limits in Mortgagee Letter 2015-30 and the 2016 Nationwide Home Equity Conversion Mortgage (HECM) limits in Mortgagee Letter 2015-29 earlier this month. These new loan limits are effective for case numbers assigned on or after January 1, 2016.
For forward mortgages, the low-cost area and high cost area limits will remain the same, as published in the HUD Handbook 4000.1, Single Family Policy Handbook. The limits will continue as follows:
Low-Cost Area: The FHA national low cost area mortgage limits (“floor”) are set at 65 percent of the national conforming limit of $417,000 for a one-unit property, and are as follows:
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One-unit: $271,050
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Two-unit: $347,000
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Three-unit: $419,425
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Four-unit: $521,250
High-Cost Area: The maximum FHA-insured mortgage limits (“ceiling”) are as follows:
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One-unit: $ 625,500
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Two-unit: $ 800,775
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Three-unit: $ 967,950
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Four-unit: $ 1,202,925
In addition, the special exceptions for Alaska, Hawaii, Guam, and the Virgin Islands published in the HUD Handbook 4000.1 will stay the same as well.
However, the maximum loan limits have increased in 188 counties, reflecting changes to housing prices in those areas. A list of the limits in counties can be found here. There are no areas where the maximum loan limits have decreased from the 2015 levels for forward mortgages. Forward mortgage limits for individual Metropolitan Statistical Area (MSA) and counties are available here.
For reverse mortgages, the maximum claim amount for FHA-insured HECMs will remain at $625,500 for all areas. This claim amount is also applicable to Freddie Mac’s special exception areas: Alaska, Hawaii, Guam, and the Virgin Islands.
A complete list of the FHA loan limits can be accessed here.
