The Federal Housing Administration has implemented new limits for its loan guarantee programs that will allow it to insure mortgages of up to $729,750 in 73 counties with high-cost housing markets, and loans above the $271,050 "floor" in more than 600 other counties with elevated home prices.

The Department of Housing and Urban Development has updated a Web search page that provides FHA mortgage limits by state, county or metropolitan statistical area to incorporate the new limits.

The Federal Housing Administration has implemented new limits for its loan guarantee programs that will allow it to insure mortgages of up to $729,750 in 73 counties with high-cost housing markets, along with loans above the $271,050 "floor" in more than 600 other counties with elevated home prices.

The Department of Housing and Urban Development has updated a Web search page that provides FHA mortgage limits by state, county or metropolitan statistical area to incorporate the new limits.

HUD has published a letter to mortgagees that includes a list of the 73 counties at the $729,750 ceiling, and a list of 666 counties where loan limits will be between the $271,050 floor and the $729,750 ceiling for one-unit properties.

The new limits — good through the end of the year — were mandated by the $787 billion economic stimulus bill signed into law by President Obama last week. The bill also raised limits for Fannie Mae and Freddie Mac, whose regulator, the Federal Housing Finance Agency, released new limits Monday (see story).

FHFA has published lookup tables for the new Fannie and Freddie limits.

The stimulus bill allows FHA, Fannie Mae and Freddie Mac to guarantee loans of up to 125 percent of the median home price in high-cost markets, up to a maximum of $729,750 for one-unit properties. The cap for two-unit properties is $934,200; three-unit properties is $1,129,250; and four-unit properties is $1,403,400.

The floor limit for FHA loans in "normal markets" remains $271,050 for one-unit properties, $347,000 for two-unit properties, $419,400 for three-unit properties, and $521,250 for four-unit properties.

Limits are generally set according to the median home price in the county in which the property is located. For homes located in metropolitan or micropolitan statistical areas, the county with the highest median home price is used to set the limit for the entire metropolitan or micropolitan area.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription