HousingWire – Kerri Ann Panchuk
Beginning next year, homeowners with Federal Housing Administration loans will no longer be able to qualify for the $729,750 high-cost area loan limit. Instead, the Department of Housing and Urban Development is implementing a rule passed a few years back that moves the agency’s standard loan limit for high-cost areas down to $625,500 for all FHA loans.
The standard loan limit for areas where housing costs are low is expected to remain at $271,050, while the ceiling for FHA-insured reverse mortgages will stay at $625,500, HUD added. The Housing and Economic Recovery Act of 2008 technically changed the ceiling for high-cost areas, but the financial crisis and slow-moving recovery prompted Congress to delay the standard’s implementation