The Federal Housing Administration (FHA) announced its 2018 loan limits in early December (12/7/17) in a move that recognizes the housing industry’s rising home prices. The new loan limits will allow more people who would not normally qualify for a loan to become home buyers. Nationally rising median home prices mean that home buyers in 3,000 counties will see increases in FHA loan limits.
The national conforming loan limit, which follows Fannie Mae and Freddie Mac guidelines, will increase to $453,100 in 2018, up from $424,100 in 2017. The FHA floor, or “low-cost” limit, is set at 65% of the national conforming loan limit, making 2018’s FHA loan limits $294,515, up from 2017’s $275,665.
The FHA’s low-cost floor applies to homes and communities where 115% of area median home prices are less than $294,515. The FHA’s high-cost ceiling applies to homes and communities where 150% of area median home prices are greater than $294,515 but less than $679,650, which is the FHA’s 2018 ceiling loan limit, up from 2017’s $636,150.
The loan limits in 223 counties will see neither and increase or decrease, and no counties will see a decrease in loan limits. View your county’s FHA loan limit on FHA’s loan limits webpage.