2014 Conventional & FHA Loan Limits

By
Mortgage Banker with Total Mortgage Services, Conventional Loans, FHA, 203(k), USDA, VA, Jumbo loans NMLS #138061 TMSNMLS 2764
http://actvra.in/47Vm

 

2014 Loan Limits for Conventional & FHA Loans

 

mortgage

     For the calendar year 2014, it was recently announced that loans backed by Fannie Mae and Freddie Mac will maintain their current maximum loan limits with NO changes.  This is great news for the real estate industry as there was recently talk of lowering the limits slightly.  While slightly lower limits wouldn't have a huge impact on lending, they could signal a declining real estate market & depreciating home prices.

 

    

     Unfortunately, HUD decided to take a different route and announced that FHA loan limits for calendar year 2014 will include a reduction of the maximum loan limit.  In some high cost areas the maximum loan amount is being reduced by more than $100,000.  This could be less indicative of the market and more indicative of HUD limiting exposure on HUD-insured mortgages, which have resulted in massive losses over the past several years as a result of a recession that included large numbers of foreclosures & short sales of HUD-insured properties.  Without further ado, here are the 2014 loan limits for conventional and FHA loans:

 

2014 Conventional Loan Limits**

1 unit (single family home) - $417,000

2 unit - $533,850

3 unit - $645,300

4 unit - $801,950

**These are the base loan limits.  Certain high cost areas (listed by county) across the country have higher limits  (up to $625,500 for the contiguous United States 1-unit, $721,050 for Honolulu, HI).

 

2014 FHA Loan Limits**

1 unit - $379,500 (down from $420,000)

2 unit - $485,800

3 unit - $587,250

4 unit - $729,800

**As with conventional loans, higher cost areas across the country allow for higher maximum loan limits.

 

Curious what the loan limits are in your county or across your state? 

Send me a quick message and I'll be happy to forward a pdf covering 2014 loan amounts for every county nationwide.

 

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Topic:
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2014 fha loan limits
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Comments 22 New Comment

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Rainmaker
104,108
Jeffrey Stevens
Jeffrey Stevens Realtor®/Associate Broker
Keller Williams Realty

Thank you, John. Not great news for some places but our market should be just fine with these new limits. Good post.

December 10, 2013 06:23 AM
Rainmaker
149,123
Suzanne Otto
Your Montgomery County PA home stager
Six Twenty Designs

I don't know, maybe it's a good thing HUD lowered the max amount. People can buy bigger homes with such a little down payment, I don't think they fully understand the costs. Just my opinion.

December 10, 2013 07:31 AM
Rainmaker
163,222
John Meussner
Making Mortgages Easy
Total Mortgage Services, Conventional Loans, FHA, 203(k), USDA, VA, Jumbo loans

Laura - thanks for the comment!

Aaron - absolutely agree, maybe we'll see a pmi reduction too so they can really get back to helping the underserved (we can all dream, right?)

Cheryl - it varies by county, so depending on where you are it may be uniform for a large area or have several different limits if lots of counties are nearby.

Ed  - thank you!  On the conforming side I also think it's great news, I wasn't happy to see them consider reducing the max amounts.

Sharon - unfortunately that kind of result will be likely in many places.  While the high balance program isn't necessarily used often, lowering the limits across the board I don't think was a great idea.

Joe - I did see that NAR had significant input- I'm happy that they go to bat for the industry so often, especially since in the lending community we can't get our act together on capitol hill.

Bill - I hope you don't see any effect.  I can only foresee it being an issue with rising values in some areas, could make it tough for anyone with less than 5% down.

Joan - that's one of the more drastic decreases as is being seen across the high balance spectrum.  Since FHA is designed to help lower-income folks, it makes sense, but I think the timing was poor since the market is still somewhat fragile.

Paul - thanks for the comment, I don't think high balance will see much effect but dropping the limits at the lower levels could hurt in areas with rising values.

Jeffrey - thanks for stopping by, hopefully the effects won't be too bad across the country - folks will just have to save a little more prior to purchasing in some areas.

Suzanne - thanks for commenting, and I do agree to an extent.  I think lowering the high balance limits would've been ok, but cutting the limits across the board I think was done with poor timing - should've given it another year in my opinion.

 

December 10, 2013 08:26 AM
Rainer
103,210
Kevin Guttman
Residential Mortgage-Lending Virtually Nationwide
Top Mortgage Originator

Hey John, we saw the FHA limit for our county go from $325k to $271,050. Quite a reduction! Thanks for your post.

Kevin

December 10, 2013 02:34 PM
Rainmaker
163,222
John Meussner
Making Mortgages Easy
Total Mortgage Services, Conventional Loans, FHA, 203(k), USDA, VA, Jumbo loans

Kevin, that is a tough break, hopefully it won't prevent too many buyers from entering the marketplace.  Thanks for the comment!

December 10, 2013 03:23 PM
Anonymous
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Rainmaker
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John Meussner

Making Mortgages Easy
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