HUD has announced the FHA loan limits for 2019.
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).
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.
Finding the right loan for you!
If you’re reading this post, you may have questions about mortgages. Post your questions in the comments section below for a speedy reply. Or feel free to email (email@example.com) or call (503-799-3711). We’re here to help!
Guaranteed Rate, Inc. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate, Inc. Guaranteed Rate, Inc. its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.