FHA Raises Loan Limits for 2017

The Federal Housing Administration (FHA) has announced 2017 increases for forward mortgage limits and home equity conversion mortgages (HECMs).

“Because of the change to the national median home price this year that increased the Federal Housing Finance Agency [FHFA] limits, FHA’s ‘floor’ and ‘ceiling’ loan limits will increase for calendar year 2017 to $275,665 and $636,1501, respectively, for a one-unit property,” the FHA announced in Mortgagee Letter 2016-20, adding that there are “no jurisdictions with a decrease in loan limits from the 2016 levels. “

In a separate Mortgagee Letter, the agency stated, “Because of the change to the national median home price this year that increased the FHFA limits, the maximum HECM claim amount has increased to $636,150 for calendar year 2017 for all areas.”