FHA Loan Limits Remain Unchanged for 2015

December 9, 2014

The Federal Housing Administration announced limits for the highest ($625,500) and lowest ($271,050) cost areas will remain the same in 2015. These loan limits are effective for case numbers assigned on or after Jan. 1.

The mortgage loan limits for FHA-insured reverse mortgages will also remain unchanged. The FHA reverse-mortgage product, known as the Home Equity Conversion Mortgage (HECM), will continue to have a maximum claim amount of $625,500, with actual loan limits based on property value, borrower age, and current interest rates.

Each year, FHA recalculates its national loan limit based on a percentage calculation of the national conforming loan limit. Depending on those limits, FHA's minimum national loan limit "floor" is at 65 percent of the national conforming loan limit. The floor applies to those areas where 115 percent of the median home price is less than 65 percent of the national conforming loan limit.

Conversely, any area where the loan limit exceeds the "floor" is considered a high cost area. The maximum FHA national loan limit "ceiling" is at 150 percent of the national conforming limit. In areas where 115 percent of the median home price (of the highest cost county) exceeds 150 percent of the conforming loan limit, the FHA loan limits remain at 150 percent of the conforming loan limit.

Last week, the Federal Housing Federal Housing Finance Agency announced limits for Fannie Mae and Freddie Mac mortgages also will remain unchanged for 2015.


Contact ALTA at 202-296-3671 or communications@alta.org.

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