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FHA Loan Limits Will Not Change for 2015

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The Federal Housing Administration (FHA) announced Friday it will leave loan limits unchanged for the highest- and lowest-cost housing markets in 2015.

For most high-cost housing markets, the maximum allowable amount for an FHA loan will stay at $625,000, a threshold first set at the start of this year.

For low-cost metro areas, the limit will remain unchanged at $271,050, the agency announced.

FHA recalculates its national loan limit every year, basing its math on a percentage calculation of the national conforming loan limit for mortgages eligible for purchase or guarantee by the GSEs. That limit was also left untouched by the Federal Housing Finance Agency and will stay at $417,000 for most of the country next year.

FHA will continue to insure mortgages at a much higher threshold—$938,250—in certain established high-cost areas, including Alaska, Hawaii, Guam, and the Virgin Islands.

The agency also announced that loan limits for FHA-insured reverse mortgages will also be left untouched. FHA's reverse mortgage product, the Home Equity Conversion Mortgage (HECM) will have a maximum claim amount of $625,500.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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