Due to increasing housing prices nationwide, the Federal Housing Administration announced a new schedule of loan limits for 2017 that reflects recent and anticipated market changes.
In most areas of the country, the loan limit increases will be modest. However, in some higher value markets, the increase will be more pronounced. In high cost areas, the loan limit will increase in 2017 to $636,150—up $26,150 from 2016’s $625,000 ceiling limit. The maximum amount for FHA reverse mortgages will also increase to $636,150. The FHA loan limit floor will also increase in these high cost areas from $271,050 to $275,665. These limit increases will apply to 2,948 counties in the U.S. while 286 counties will remain unchanged. No areas will experience a decrease in FHA loan limits.
HUD’s announcement follows Fannie Mae and Freddie Mac’s statement that maximum loan amounts for their mortgages would also increase in 2017. Both increases point to a healthy American housing market, which is welcome news for both investors and consumers.