Buying your dream home has just gotten a little easier. Earlier this month the Federal Housing Administration (FHA) announced an increase in loan limits starting January 1, 2017. Rising housing prices have called for higher loan “ceilings”, or loan maximums, as well as higher “floors”, or minimum loan amounts. The coming increase in home loan ceilings will help you secure that dream home you’ve been eyeing. These changes in loan limits have affected 2,498 counties and left 286 counties’ limits unchanged. The San Diego 2017 loan limit has been increased to $612,950.
Maximum Loan Limit
The maximum loam limit will be $636,150 and the minimum loan limit will increase to $275,665. The FHA has also decided to increase the maximum claim amount for FHA-insured Home Equity Mortgages (HECMs) to $636,150.
Minimum Loan Limit
The FHA has declared the minimum national conforming loan limit to be 65% of $424,100, which is the national conforming limit. This minimum is applicable to homes in areas where 115 percent of the median home price is less than the FHA’s minimum national conforming loan limit.
Limits by County
For the San Diego county, the max loan amount for 2017 will be $612,950 for a single-family one-unit home. The Los Angeles and Orange Counties max will be $636,150. The Riverside and San Bernardino counties maximum will be $379,500.
Next Steps to Buying Your Dream Home
Though these changes in loan floors and ceilings help in purchasing a more expensive home, it is important for you to have a clear understanding of what you can afford so that you can move forward with confidence. It’s also important to know the difference between a pre-qualification and a pre-approval.
Our loan approval process is simple, transparent, and personalized. Take advantage of these new loan floors and ceilings and contact us today to get started in the process of buying your dream home!