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FHA Announces 2020 Loan Limits

In response to rising home prices in many areas, the Federal Housing Administration (FHA) has announced new loan limits for 2020. The FHA’s standard limit for most of the country increased to $331,760. This is an increase of almost $17,000 when compared to 2019’s $314,827 limit.
 

Homebuyers in high-cost areas have been assigned higher FHA loan limits of up to $765,600 for a one-unit property. This limit increases purchase options for buyers in around 70 counties, including residents of California, New York, New Jersey, the Washington D.C. area, Idaho, and West Virginia. The revised high-cost loan limit is based on the Housing and Economic Recovery Act of 2008 (HERA) requirement for the FHA to assign a loan limit to these areas equal to 150% of the national conforming limit.
 

This is good for news for many homebuyers, especially first-time buyers who would like to buy a home with a smaller down payment or with a lower credit score.

 

The following table lists the 2020 FHA loan limits:
 

NUMBER OF UNITS LOW COST LOAN LIMITS LOAN LIMITS FOR ALASKA, HAWAII, GUAM & U.S. VIRGIN ISLANDS
  2020 2019 2020 2019
1 $331,760 $314,827 $765,600 $726,525
2 $424,800 $403,125 $980,325 $930,300
3 $513,450 $487,250 $1,184,925 $1,124,475
4 $638,100 $605,525 $1,472,550 $1,397,400


To search for your county’s 2020 loan limit, click here.
 
In cooling housing markets where home prices have dropped, the FHA decreased loan limits in 11 counties located in Idaho, Minnesota, New York, North Carolina, Tennessee, Texas, and Virginia. Click here to see the 11 counties where the decreased 2020 loan limits.
 


- Dec 09, 2019



 
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