The Federal Housing Administration announced its new loan limits for 2016, it is recorded that 188 counties will see an increase due to changes in housing prices and that there will be no decreases in the loan limits in any counties
For areas that are considered to be high cost, such as the cities of San Francisco, Washington D.C., New York, and Some Parts of Los Angeles, The FHA loan limit will stay at the national ceiling at $625,500. The FHA loan limit for areas that are considered low cost will remain at $271,050. The FHA calculates its loan limits every year and the limit is based on a percentage calculation of the nation conforming loan limit.
For areas that are considered to be high cost, such as the cities of San Francisco, Washington D.C., New York, and Some Parts of Los Angeles, The FHA loan limit will stay at the national ceiling at $625,500. The FHA loan limit for areas that are considered low cost will remain at $271,050. The FHA calculates its loan limits every year and the limit is based on a percentage calculation of the nation conforming loan limit.
The FHA Minimum national loan limit is set at %65 of the national conforming loan limit. This would apply to those areas where 115% of the median home price is less than 65% of the national conforming loan limit.
Here is a list of the 188 counties where the FHA’s loan limit will change in 2016.
Also, The FHA has announced that the mortgage loan limits for FHA- Insured reverse Mortages will remain unchanged in 2016, staying at its original maximum amount of $625,500. The actual loan amounts are determined by property value.