FHA (Federal Housing Administration) released the new mortgage loan limits for 2019. These higher loan limits will help more home buyers qualify for the low down payment financing. The loan limit in most standard locations will be $314,827, or about 65 percent of the conforming loan limit, which also just increased to $484,350.
In more expensive or “high cost” counties, the FHA limits will even be higher, up to $726,525. FHA-insured reverse mortgages will also be capped at $726,525. Over 80% of the counties in the U.S. are considered lower-cost areas, with 2.3% somewhere in between. Home buyers can see the U.S. map below, the orange and yellow locations represent higher cost locations. Please find the complete list of 2019 FHA loan limits here.
FHA loans provide a great financing option for buyers seeking a mortgage with a minimal down payment. Listed are just a few perks the program provides.
- Government backed safe and secure fix rates with no early payoff penalties.
- Low down payment. The current minimum is 3.5 percent down, which can be paid an eligible gift, down payment assistance or charitable grant, bond money.
- Buyers closing costs can be paid by the home seller.
- More forgiving credit requirements when compared to conventional loans.
Please read more about the FHA loans here, please contact us today to learn how to apply.