The Federal Housing Administration (FHA) has revised the loan limit ceiling for single-family mortgages in 2014, reducing it to $625,000 from $729,750. The change will result in approximately 650 counties having lower limits, according to what dsnews.com reports from the Department of Housing and Urban Development (HUD). For low-cost housing areas the loan limit floor will remain at $271,050. FHA-insured reverse mortgages will continue to have a maximum claim amount of $625,500. The limit for a single-family loan in Alaska, Hawaii, Guam and the Virgin Islands, will be $938,250 due to higher construction costs in those areas, as MHProNews has been informed. FHA Commissioner Carol Galante says, “As the housing market continues its recovery, it is important for FHA to evaluate the role we need to play. Implementing lower loan limits is an important and appropriate step as private capital returns to portions of the market and enables FHA to concentrate on those borrowers that are still underserved.”
