A law enacted in 1994 made a change to the way that the Federal Housing Administration (FHA) calculated the minimum and maximum loan amounts for FHA 203(b) mortgages (one- to four-family owner-occupied properties).
Minimum (Floor) Amounts
FHA minimum loan amounts ("the floors") are limited to 38 percent of the maximum loan limits used by the Federal National Mortgage Association (FNMA, or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac). FHA maximum loan amounts ("the ceilings") are set at 75% of the FNMA/FHLMC loan limits.
Unless the property is located in a high-cost area, the current maximum mortgage limits for FHA-insured loans are:
| FHA 203(b) Floors | |
| One-family: $121,296 | Two-family: $155,232 |
| Three-family: $187,632 | Four-family: $233,184 |
Maximum (Ceiling) Amounts
The limits listed below are for high-cost areas, as defined by local HUD office staff. High cost limits are equal to 95% of the area media house price, but are now subject to a ceiling based on 87% (formerly 75%) of the Fannie Mae/Freddie Mac loan limits. The current ceilings are:
| FHA 203(b) Ceilings | |
| One-family: $219,849 | Two-family: $281,358 |
| Three-family: $340,083 | Four-family: $422,646 |
As is the case with FNMA/FHLMC loans, the FHA high-cost loan limits for Alaska, Guam, Hawaii and the Virgin Islands may be adjusted up to 150% of the new ceilings.
A complete list of FHA high cost areas is available via a state-by-state lookup table at the very useful FHA Web site. This list is continually updated, so if your area is not listed and you think it should be, be sure to check back (or ask your mortgage lender) before applying.
