HUD has announced the FHA loan limits for 2019.
FHA limits vary by county, but most of the country saw an increase. Enter any county in this look-up tool to see its limit, starting January 1.
Portland’s 2019 limits
In my home base, the Portland/Vancouver MSA, the limit for a single family residence is now $474,950. The 2018 limit was $448,500, a $26,450 increase. That’s 5.9% increase, which is just about in line with Portland’s 5.5% appreciation in home values from 2017 to 2018 (September 2017 to September 2018, per Case Shiller).
Multi-unit limits
FHA loan limits for multi-unit properties also increased:
Max price with minimum down
FHA loan guidelines permit down payment options as low as 3.5%. At the minimum down payment option (again in Portland/Vancouver), your purchase price works out to:
National ceiling and floor
As I mentioned, FHA sets limits by county. The maximum loan in areas deemed to be “high-cost” is $725,525 (up 6.7% from $679,650). Nationally, the “floor” or lowest limit is $314,827 (up 6.5% from $294,515).
Cavalcade of less-than-round numbers
If you’re wondering where this cavalcade of less-than-round numbers comes from, there is a method to the madness. The National Housing Act, as amended by the Housing and Economic Recovery Act of 2008 (HERA), created a formula for FHA loan limits. The single-family limit is set at 115% of the median home price per county or Metropolitan Statistical Area.
This year, 3053 counties saw increases to their loan limits.
High cost areas HERA requires FHA to set the limit at 150% of the Fannie Mae loan limit for the year. So what are Fannie Mae limits for the year?
What about VA & Fannie Mae?
Fannie Mae has also released loan limits for 2019. Nationally, their limits are now $484,350 for a single-family home, $620,200 for a duplex, $749,650 for a triplex and $931,600 for a four-plex.
The VA limits echo Fannie Mae’s — the VA permits Veterans using their VA home loan guarantee to finance a home without a down payment up to Fannie Mae’s loan limit. Veterans borrowing over the Fannie Mae limit must make a down payment when doing so. Down payment options start at 25% of the amount over $484,350.
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