2014 Brings New Limits to Conforming and FHA Loans

In a recent report we shared the five big changes that Fannie Mae implemented on Conforming loans, but this time around we will be discussing the new limits that the Federal Housing Finance Agency has applied to both Conforming and FHA loans.

Just to clarify, Conforming loans are backed by Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. FHA loans are insured by the Federal Housing Administration, a division of Housing and Urban Development (HUD).

Here Are the 2014 Conforming Loan Limits:

Conforming loans, more commonly known as conventional loans, remain unchanged from 2013 and will continue following these base loan limits:

One unit: $417,000

Two Units: $533,850

Three Units: $645,300

Four Units: $801,950

Despite the figures mentioned above, some high cost counties will continue to have loan limits over the normal base limits. The maximum limit of these higher cost counties, like most of the San Francisco Bay area and regions of New York, will have the maximum loan limit of $625,000 for 1-unit properties in 2014. Here are the complete limits for these counties.

One Unit: $625,000

Two Units: $800,000

Three Units: $967,950

Four Units: $1,202,925

To find a complete list of all 2014 loan limits, visit the official Fannie Mae website.

Here Are the 2014 FHA Loan Limits:

Although Conforming loans were unchanged in 2014, many counties saw drastic decreases to the FHA loan limits. More specifically, the maximum loan limits on 1-unit properties were decreased in excess of $100,000. Below are the 2014 FHA loan limits for low cost areas or “floor limits”, which remain unchanged from 2013.

One Unit: $271,050

Two Units: $347,000

Three Units: $419,425

Four Units: $521,000

While the low cost areas saw no changes headed into 2014, high cost areas were reduced to $625,000 from the current $729,750 for one-unit properties. The following are the 2014 FHA loan limits for these high cost areas.

One Unit: $625,500

Two Units: $800,775

Three Units: $967,950

Four Units: $1,202,925

To find a complete list of all 2014 FHA loan limits, visit the official Department of Housing and Urban Development website.

The loan limits mentioned in this article do not apply to Alaska, Hawaii, Guam and US Virgin Islands. Furthermore, FHA Streamline refinance transactions without an appraisal are not affected by these limits. If able to meet other eligibility requirements, borrowers that apply for this loan program will be able to refinance their current loan balance.

HECMs: loan limits for Maximum Home Equity Conversion Mortgages, or Reverse Mortgage, carry over from 2013 at $625,500.

To find even more mortgage industry related news, check out all the articles from Homes.com’s mortgage expert Shashank Shekhar. To find a detailed analysis of the nation’s housing market that you can share with your clients, take a look at the Homes.com Local Market Index and Rebound Reports.

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