Maximum FHA reverse mortgage

The Department of Housing and Urban Development (HUD) announced Friday that FHA loan limits will decrease starting January 1, 2014.

Federal Housing Administration (FHA) loans are popular with first time home buyers and repeat buyers alike, since they offer a way to buy a home with as little as 3.5% down, and loan amounts up to $729, 750 in high-cost areas.

But for FHA loans originated in 2014, the maximum loan amount in high cost areas will be lowered to $625, 500. That’s a big decrease – $104, 250 to be exact – and could affect many homebuyers’ plans to buy at the higher end of FHA’s limits.

Buyers in places like Los Angeles and San Francisco, California, New York City, and Washington, D.C., will need to secure other types of financing or make a bigger down payment to buy homes above $656, 775 starting in 2014.

Lower Limits in Many Parts of the U.S.

But the highest end of the threshold is only part of the story. Loan limits for many other areas of the country will experience FHA loan limit cuts as well. Here are a few examples:

City

2013 FHA Loan Limit

2014 FHA Loan Limit

Denver, Colorado

$406, 250

$391, 000

Seattle, Washington

$567, 500

$506, 000

Orlando, Florida

$353, 750

$274, 850

Philadelphia, Pennsylvania

$420, 000

$379, 500

Las Vegas, Nevada

$400, 000

$287, 500

Buyers in cities and counties across the U.S. should check new 2014 limits for their local area. If limits have been cut, they should apply for FHA financing as soon as possible to avoid the lower limits.

Check 2014 limits for high cost areas and for cities affected by FHA’s new loan amount ceiling.

FHA Streamline Refinances and Reverse Mortgage Not Affected by 2014 Loan Limits

The maximum reverse mortgage loan amount is not affected by the change. The 2013 limit for these loans is $625, 500, which is already in line with 2014 standards for other FHA loan types. However, borrowers living in areas not at the FHA ceiling may see decreases in the maximum amount they can borrow with a reverse mortgage.

FHA “Floor” Limit Stays at $271, 050

Many areas of the country are not considered “high cost” areas. The FHA loan limit in these areas will not change from 2013 to 2014, but will remain at these levels:

  • One-unit home: $271, 050
  • Two-unit home: $347, 000
  • Three-unit home: $419425
  • Four-unit home: $521, 250

If your county or metropolitan area does not show up on the FHA’s list of high cost areas, these will be your maximum loan amounts.

Some Locations See Increased FHA Loan Limits

photo4
The University of North Carolina Press Dispossession: Discrimination against African American Farmers in the Age of Civil Rights
Book (The University of North Carolina Press)
  • Used Book in Good Condition

FHA backing away from Reverse Mortgages....

2009-09-22 15:05:48 by Apprsr

FHA Looking to Decrease Its Exposure to Reverse Mortgages
Reverse mortgage lenders are learning that the Federal Housing Administration is moving quickly to implement a reduction in the loan proceeds that seniors can receive from a FHA-insured Home Equity Conversion Mortgage.
Mortgagedailynews.com

Declining home values squeeze reverse mortgages

2009-10-04 22:05:18 by Apprsr

Kenneth Harney
Sunday, October 4, 2009
(10-04) 04:00 PDT Washington - --
Declining home values have put a serious squeeze on one of the mortgage market's most popular and fastest-growing financing concepts: the Federal Housing Administration's reverse mortgage program for seniors 62 and older.
In a letter to reverse mortgage lenders Sept. 23, FHA Commissioner David Stevens said his agency must reduce the maximum amounts seniors can receive on reverse mortgages because of a $798 million estimated deficit in the program in the coming fiscal year

You might also like:

Appleton FHA Loans
Appleton FHA Loans
FHA Loan - Pros and Cons of FHA Loans
FHA Loan - Pros and Cons of FHA Loans

SENIOR SIGNALS: Pros and cons of reverse mortgages  — Bristol Press
30, 2013, the Federal Housing Administration placed strict limits on loan sizes and raised mortgage insurance premiums designed to encourage slow, steady home equity withdrawals. So don't automatically rule out reverse mortgage. It may fit your needs.

Predictions: Can You Wait For Lower Mortgage Rates In 2014?  — The Mortgage Reports
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Waterstone Mortgage Corporation. The views and opinions ..

Related posts:

  • Avatar Roger Given the state of the economy,why does it take so long to get a home owners loan?
    Nov 03, 2011 by Roger | Posted in Renting & Real Estate

    Most FHA or Rural Development loans take a very log time for approval,although the persons applying for the loan can obviously afford it. One was told,you ll have to elsewhere you make to much money? If they can afford it why not have the loans processed faster to accomadate those who need housing?

    • Because no one can afford to back a loan that will fail, so lenders are extra careful.