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New FHA Loan Limits in 2016

Posted By Shirley Smith @ Jan 14th 2016 1:15pm In: 2016 New Laws in Real Estate California

188 Counties Loan Limits rose from the 2015 Limit. San Diego County included in the loan limits increase.

The Federal Housing Administration released its maximum mortgage limits for 2016 where limits have increased for 188 counties effective January 1st and will remain in effect throughout the year. The increase was brought about by the changes in home prices in these 188 counties. No counties on the other hand, have decreasing loan limits.


Every year, the FHA recalculates its loan limits based on 115% of the median house price in the area. For those located in Metropolitan Statistical Areas (MSA), the limit for all areas is based on the highest cost county. 

Some of the areas experiencing higher loan limits include:

  • San Diego County, California, in which the limit for a single-family unit is increasing from $562,350 to $580,750.
  • Mecklenburg County, North Carolina (Charlotte), which is rising from $271,050 to $280,600.
  • Suffolk County, Massachusetts (Boston), which is rising from $517,500 to $523,250.

These three counties along with other 36 higher loan limits counties are seeing this growth because of the significant boost in home values the past year. 

FHA's loan limit floor -- which is 65% of the Federal Housing Finance Agency's conforming loan limit -- is still $271,050. The ceiling will also stay at $625,500. The administration calculates loan limits annually by using a value worth 115% of the median home price in each area. 

For a list of the 188 counties with new loan limits, click here.

Source: Bankrate

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