FHA Loan Limits 2014 – New Up-to-date Guide Available At LoanLove.com

A new guide from LoanLove.com helps explain the changes to the limits for FHA loans in 2014.


LoanLove.com is a borrower advice website that offers in depth and up to date information on loans in an easy to understand and entertaining format. The company, which has quickly become a trusted destination for current news and expert loan advice, empowers homeowners with first class knowledge, valuable resources and connections to top rated industry professionals. A recent article posted on the Loan Love website continues to help borrowers understand the loans with a guide to the FHA loan limits 2014 has in place.

The article starts by explaining, “Prospective home buyers shopping around for conforming, conventional and FHA loans in 2014 will find only a few changes in loan limits compared to last year. For the most part, the limits—which set the maximum allowable loan size for a mortgage in a given geographical area—remain at 2013 levels, other than a few adjustments up or down in some high-cost regions.”

Loan Love goes on to explain about the 2014 loan limits for conforming and conventional loans, then gets into details about the FHA loan limits for 2014. The article says, “The Department of Housing and Urban Development (HUD) implemented new single-family loan limits for high-cost areas under the FHA loan program for 2014 as well. While the standard loan limit for areas where housing costs remain relatively low will stay unchanged at $271,050, the new national maximum loan limit for the highest-cost areas has been reduced from $729,750 to $625,500, which mirrors conforming loan limits for single-family homes in most high-cost areas.”

Loan Love explains that the loan limit reduction impacts around six hundred and fifty counties across the nation. The higher limits, which were the result of the Economic Stimulus Act implemented in 2008, were an emergency solution to ensure that mortgage credit remained available at a time when private lending was critically constrained. The lower limits that have just now been put in place were meant to take affect years ago, but the implementation was congressionally delayed.

The article also explains that the minimum FHA national limit, a.k.a. “the floor”, is set at 65% pf the national conforming loan limit. Right now, the national conforming loan limits for 2014 are set at $417,000 for a single family home. This minimum limit applies to counties where 115% percent of the median home price is less than 65% of the national conforming loan limit.

Loan Love then gives the current FHA limits for low cost areas, or the floor, as:

  •     $271,050 for a one-unit home
  •     $347,000 for a two-unit home
  •     $419,425 for a three-unit home
  •     $521,250 for a four-unit home

It also gives the maximum loan amounts for high cost areas, also known as the FHA loan ceiling, as:

  •     $625,500 for a one-unit home
  •     $800,775 for a two-unit home
  •     $967,950 for a three-unit home
  •     $1,202,925 for a four-unit home

For more information on the FHA loan limits for 2014, as well as the limits for conforming and conventional loans, please click here to read the full article on LoanLove.com.






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