Lower FHA Loan Limits For 2014

Lower FHA Loan Limits For 2014

Lower FHA Loan Limits for 2014

Hud just release Mortgagee Letter HUD No. 13-184 HUD ANNOUNCES NEW FHA LOAN LIMITS for 2014 TO TAKE EFFECT JANUARY 1ST The existing FHA loan limits for 2013 around the country were the result of HERA Housing and Economic Recovery Act of 2008, which is not going to be extended this year. HUD has now announced that those FHA Loan Limits for 2014 are lower.

You can read HUD’s mortgagee letter here. In some areas of the country this will have little effect. Here in California and Arizona where our clients are, we will see a tremendous impact. You can check your county’s FHA loan limits for 2014 here.

For those areas that were considered high cost areas the Ceiling was reduced. The following counties in California saw a reduction from the previous ceiling to $625,500 for single family homes: Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Mateo, Santa Barbara, Santa Clara, and Santa Cruz. You can read the actual chart here. In Arizona there were no high cost areas but there was one county, Coconino County (Flagstaff, AZ) which was in an area between the Floor and the Ceiling was lowered to $362,250 for single family. You can read that chart for those counties between floor and ceiling here.

In Arizona Maricopa County (Phoenix, AZ), which has seen a tremendous rise in home prices over the last year, has recently seen its rate of rise stall. Add in the reduction of the FHA Loan Limits for 2014 to $271,050 will probably have actual impact on home value increases. Though Pima County (Tucson Arizona) was not as high this year 2013, they too were lowered to $271,050 and are the same as Phoenix now.

If you are in other counties, use the link here to check your particular county

 

 

About Kevin Hardin

Kevin W. Hardin is a 22 year veteran of the Mortgage and Real Estate industries. He holds a Juris Doctor (JD) degree from Concord Law School and a CMB (Certified Mortgage Banker) from the Mortgage Bankers Association. He is a Senior Loan Officer at HomeStreet Bank. He works with Borrowers, Attorneys, Title Companies, Real Estate Agents and Mortgage Companies on mortgage law issues.

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