FHA to increase floor and ceiling loan limits in 2018


The Federal Housing Administration announced that they will raise loan limits in more than 3,000 counties nationwide in 2018.

In total, 3,011 counties will have higher loan limits next year, up slightly from 2,948 counties in 2017 and a significant increase from 188 counties in 2016. The rise of median home values in the last two years has driven up the maximum loan limits in many areas of the country.

The National Housing Act requires the FHA to set single-family loan limits at 115 percent of median housing prices — the limits vary by county county. Next year, high-cost areas will see a 150 percent increase in loan limits across the board, with ceilings rising to $679,650 — up from $636,150 — and floor limits rising to $294,515 — up from $275,665. Only 223 counties won’t see any changes in their loan limits.

Limits for reverse mortgage loans will also see a significant uptick in 2018. All in all, limits will rise to $679,650, up from $636,150 in 2017. This change will apply to all reverse mortgage loans across the country and will not be altered by location.

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