A week after the Federal Housing Finance Authority announced it was raise the maximum conforming loan limit on loans acquired by Freddie Mac and Fannie Mae, the Federal Housing Administration announced yesterday it also increased its loan limits slightly in most areas of the country in 2017, due to the rise in home values.

In high-cost areas, the FHA national loan limit “ceiling” will increase to $636,150 from $625,500. FHA will also increase its “floor” to $275,665 from $271,050, according to the FHA press release.

The maximum claim amount for FHA-insured Home Equity Conversion Mortgages (HECMs), or reverse mortgages, will increase to $636,150. This amount is 150 percent of the national conforming limit of $424,100.

Due to changes in housing prices and the resulting change to FHA’s floor and ceiling limits, the maximum loan limits for forward mortgages increased in 2,948 counties. There were no areas with a decrease in the maximum loan limits for forward mortgages though they remain unchanged in 286 counties.

The FHA’s minimum national loan limit floor is set at 65 percent of the national conforming loan limit of $424,100. The floor applies to those areas where 115 percent of the median home price is less than 65 percent of the national conforming loan limit.

The FHA maintains a list of FHA loan limits, areas at the FHA ceiling, areas between the floor and the ceiling, as well as a list of areas with loan limit increases online at its Loan Limits Page.

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