For the typical person, they have a lot of questions when it comes to buying a house. Just how does one qualify for a loan and just what exactly are FHA loans? What about down payment assistance or HUD Homes? The common person is typically in the dark when it comes to things like these and has difficulty in trying to proceed.
FHA Loan Limits
Unfortunately for those hoping the loan limits would increase, the FHA or Federal Housing Administration has announced their new loan limits schedule for the year of 2015 and they will remain the same as 2014. These new loan limits will be in effect for case numbers that have been signed starting January 1 onwards and will last until December 31. The FHA will calculate the limit for the maximum loan for areas that are considered as high cost. These areas will be at the same rate as they were back in 2014 at $625,500. On the other hand, for places with low housing costs, the rate will remain the same—the rate will still be $271,050.
Every year, the FHA recalculates the limit for the national loan. They recalculate it based from a certain percentage from the national limit for conforming loans. It is based on this that the floor limit for the minimum national loan is set. The FHA sets it at 65% of the national limit for conforming loans. This is applicable to areas wherein 115% of its median home price is below 65% of the national limit for conforming loans. This also means that the opposite also holds true. If the area in question has a loan limit that is above the floor limit then the area will be considered as a high cost area.
As for the maximum, the maximum national limit ceiling of the FHA is set at 150% of the national conforming limit. For places whose 115% of the median price is more than the ceiling limit then the FHA loan limit will remain at 150% of the conforming load.
Other Services Detailed
Taking the median area home prices in to consideration, an area can be deemed eligible for an FHA loan limit that is over the national standard limit and all the way to the national ceiling level. If you are in need of any additional information regarding the loan limit adjustments for two, three, or even four properties as well as Special Exception areas, you can read more from the FHA’s mortgagee letter. Also, as an extra to the Mortgagee Letter, it also provides info on the countries that can apply for these types of loan limits that are over the national standard. Borrowers who already have existing FHA insured mortgages can still continue the use of the FHA’s Streamline refinance program. This will not take into consideration the ongoing balance from their current loan.
They also announced the mortgage loan limits that are used in the FHA-insured reverse mortgages. It will remain the same as the previous year and will still have a maximum claim amounting to $625,500. There will still be actual loan limits and these will be based on the following factors: borrower’s age, property value, and the current interest. These reverse mortgages lets homeowners that are aged 62 years and above to borrow despite the valuation of their houses and without the need for further requirements in monthly payments.
This page provides pertinent components of the (NHA) National Housing Act, and also the
(FHA) Federal Home Loan Mortgage Corporation Act. This information will explain the FHA Title II
loan limits for all Forward Mortgages, the (HECM) or Home Equity Conversion Mortgage, and streamline refinances without an appraisal.
Single family forward mortgage FHA loan limits are
governed by section 203(b)(2) of the National Housing Act, which consists of a
cross-reference to section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454(a)(2)).
Streamline Refinance Mortgages
FHA Streamline refinances without
having an appraisal are not subject to the limits established by Section 203(b)(2) of
the National Housing Act. They are subject to the maximum mortgage
amounts governed by Section 223(a)(7) of the National Housing Act.
HECM or Reverse Mortgages
The Home Equity Conversion Mortgage
loan limits for Traditional, HECM for Purchase and the HECM
to HECM refinances are governed by the maximum claim amount limitation
in sections 255(g) and 255(m) of the National Housing Act, which contains
cross-references to section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454)(a)(2)).
The loan limits listed apply to FHA Title II forward
mortgage insurance programs under the National Housing Act, except for
the streamline refinance loans that occur without an appraisal, addressed in the
“Streamline Refinances Loan Limits”.
The “floor” or minimum FHA national loan limit is at 65% of the national
conforming loan limit – $417,000 for a one unit property for the
period January 1, 2015 through December 31, 2015. The FHA “floor” loan limits
applies to those areas where 115% of the median home price is less than 65%
of the national conforming loan limit.
All locations where the loan limit goes beyond the “floor” is a high cost area.
The maximum FHA national loan limit “ceiling” is at 150% of the
national conforming loan limit. In locations where 115% of the median
house price (of the highest cost county) goes beyond 150% of the
conforming loan limit, the FHA loan limits remain at 150% of the
conforming loan limit.
The following table illustrates FHA loan limits for low cost and high cost
|Property Size||Low Cost Area “floor”||High Cost Area “Ceiling”|
The FHA loan limits for all other locations, where 115% of the median home price for the area is between the “floor” and “ceiling,” the loan limit shall be set at 115% of the median home price as determined by HUD.
Section 214 of the National Housing Act permits loan limits for Alaska,
Hawaii, Guam and the Virgin Islands to be increased to 150% of the
“ceilings” to account for higher costs of construction.
These special exception areas have potential for higher limits
where 115% of the median home price exceeds 150% of the
national conforming loan limit for the period January 1, 2015, through
December 31, 2015.
Home Equity Conversion Mortgages – HECM – Loan Limits
For the period January 1, 2015 through December 31, 2015, the maximum
claim amount for a FHA-insured HECM will remain at the amount of $625,500.
Which is 150% of Federal Home Loan Mortgage Corporation’s (Freddie Mac) national
conforming limit of $417,000. This maximum claim amount of $625,500 is
also applicable to Freddie Mac’s special exception areas (Alaska, Hawaii,
Guam and the Virgin Islands).
2015 FHA Loan Limits California
|Location||Single||Duplex||3 Unit||4 Unit|
|SACRAMENTO,ROSEVILLE, ARDEN, ARCADE, CA||$474,950||$608,000||$734,950||$913,350|
|EUREKA, ARCATA, FORTUNA, CA||$327,750||$419,550||$507,150||$630,300|
|TRUCKEE-GRASS VALLEY, CA||$477,250||$610,950||$738,500||$917,800|
|RIVERSIDE-SAN BERNARDINO-ONTARIO, CA||$355,350||$454,900||$549,850||$683,350|
|SAN DIEGO-CARLSBAD, CA||$562,350||$719,900||$870,200||$108,1450|
|STOCKTON-LODI, CA SAN JOAQUIN, CA||$304,750||$390,100||$471,550||$586,050|
|SAN LUIS OBISPO-PASO ROBLES-ARROYO GRANDE||$561,200||$718,450||$868,400||$1079,250|
|VALLEJO-FAIRFIELD, CA SOLANO, CA||$400,200||$512,300||$619,300||$769,600|
|SANTA ROSA, CA||$520,950||$666,900||$806,150||$1,001,850|
|OXNARD-THOUSAND OAKS-VENTURA, CA||$603,750||$772,900||$934,250||$1,161,050|
FHA Jumbo Or High Balance FHA Loan Limits California 2015
|Location||Single||Duplex||3 Unit||4 Unit|
|SAN FRANCISCO-OAKLAND-HAYWARD, CA||$625,500||$800,775||$967,950||$1,202,925|
|LOS ANGELES-LONG BEACH-ANAHEIM, CA||$625,500||$800,775||$967,950||$1,202,925|
|SAN JOSE-SUNNYVALE-SANTA CLARA, CA||$625,500||$800,775||$967,950||$1,202,925|
|SANTA MARIA-SANTA BARBARA, CA||$625,500||$800,775||$967,950||$1,202,925|
|SANTA CRUZ-WATSONVILLE, CA||$625,500||$800,775||$967,950||$1,202,925|
We are a approved with FHA HUD Direct Lenders. Our mortgage company is also offers all VA home loans. Work with a mortgage professional who is an expert in Government backed loans. Contact us for assistance with your FHA home loan. Our broker/lenders offer FHA, FHA Jumbo (High Balance), FHA Jumbo Streamline refinance, FHA Jumbo Purchase, FHA Streamline, VA, VA IRRRL’s, VA Jumbo purchase, VA Jumbo Refinance, VA Cash-out refinance, FHA Rehab 203K, VA, Conforming & Jumbo Loans. Find out more about us by calling the number listed and speaking with a FHA mortgage consultant.