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FHA Loan Limits to Remain Unchanged from 2007

UPDATE 03/07/2008 The new FHA loan limits our out. You can Search FHA Maximum County Mortgage Limits by State

Now Kenosha County, Cook County, Dupage County,
Dekalb County, Grundy County, Kane County, Kendall County and Lake County for a single family home are now set at a maximum of $410,000. This is great news!

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WASHINGTON - Housing and Urban Development Secretary Alphonso Jackson today announced that the Federal Housing Administration (FHA) has kept its single-family home mortgage limits unchanged from 2006 limits.

Effective January 1, 2007, FHA will continue to insure single-family home mortgages up to $200,160 in standard areas and up to $362,790 in high cost areas. The high cost amount is still almost $50,000 more than two years ago. The loan limits for two-, three- and four-unit dwellings also remain unchanged.

In 2005, the loan limits were $172,632 in standard areas and $312,895 in high cost areas. Six years ago, the limits ranged from just $132,000 to $239,250. These levels were below the cost of many homes in many communities. As a result, families who needed FHA mortgage insurance to qualify to buy a home were effectively locked out of the process.

The unchanged loan limits are part of an annual adjustment HUD makes to account for rising home prices. Under federal law, loan limits are tied to the conforming loan limits of Freddie Mac and Fannie Mae, federally chartered corporations that buy and package mortgages. HUD calculates the FHA mortgage loan limit for 3,226 geographic areas within the United States. The limits vary from area to area, but all fall within the new rage of $200,160 to $362,790.

Many low-income and first time homebuyers are attracted to FHA-insured loans because the agency requires only a three-percent down payment.
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