Actually there are three sets of limits, a limit for homes in lower cost areas (the “floor”), limits in “higher-cost” areas and limits for areas outside the continental United States: The limits look like this:Floor
___One-Unit — $271,050___Two-Unit – $347,000___Three-Unit — $419,400___Four-Unit — $521,250
Higher-Cost Areas
___One-Unit — $625,500___Two-Unit — $800,775___Three-Unit — $967,950___Four-Unit — $1,202,925
Alaska, Guam, Hawaii and the Virgin Islands
___One-Unit — $938,250___Two-Unit — $1,201,150___Three-Unit — $1,451,925___Four-Unit — $1,804,375
The FHA loan limits are related to the conventional loan limit which is announced each year by Federal Housing Finance Agency. For 2009 the conventional loan limit will be $417,000, unchanged from 2008.
Which FHA loan limit applies to a property you want to finance or refinance? To answer that question check with a lender. Do not go house hunting until you’re certain which loan limit applies in your situation.
It’s important to check with lenders because the definition of a “high cost” area can change. That is, lenders in a lower-cost area can appeal to HUD to be redefined as a “high cost” housing area and thus qualify for larger FHA loans.
HUD does have an FHA loan limits page online, however borrowers will get far more information from lenders.
