2015 Mortgage Loan Limit Charts

2015 Loan LimitsLoan limits for 2015 remain virtually unchanged from 2014, news which is hardly evidence of a booming real estate marketplace. Instead, what everyone would really like to see are higher loan limits, limits justified by rising real estate values.

According to the National Association of Realtors, “The median existing-home price for all housing types in October was $208,300, which is 5.5 percent above October 2013. This marks the 32nd consecutive month of year-over-year price gains.”

That’s progress but there’s a lot more to go. RealtyTrac reports that “the median sales price of U.S. single family homes and condos in October was $193,000, up 2 percent from the previous month and up 16 percent from a year ago to the highest level since September 2008 — a 73-month high.”

Unfortunately, the same report also shows that home values remain 19 percent below the 2006 peak.

Conforming Loan Limits

The 2015 conforming loan limits vary according to the county where you’re located. Instead of one national mortgage limit, loan limits depend on; one, whether the property is in a general or high cost area; two, whether the property is within the lower 48 states; and, three, whether the property is located in Alaska, Hawaii, Guam and the U.S Virgin Islands.

In general terms, the 2015 loan limits for a single-family home range from $417,000 to $625,500 in the 48 continental states. Once you know the loan limit for a single-family home in a specific area you can then see the limits for owner-occupied homes with two to four units.

The new loan limits show a shift in 46 counties nationwide to higher limits because of stronger local markets. For context be aware that there are 3,144 county and county equivalents.

2015 Conforming Loan Limits


Minimum/Maximum Original Loan Amounts

Properties in Alaska, Hawaii, Guam and the U.S Virgin Islands

Maximum Loan Amount,
General Areas
Maximum Loan Amount,
High Cost Area
Minimum Loan Amount,
General Area
Maximum Loan Amount,
High Cost Area
Source: HUD, OurBroker, FHFA

VA Loans

Unlike Fannie Mae, Freddie Mac or the FHA, lenders are allowed to lend as much as they like to qualified veterans. In practice this means four times the actual VA loan guarantee (insurance) provided to mortgage lenders. As the VA explains, it “does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a downpayment. These loan limits vary by county, since the value of a house depends in part on its location.”

Generally, for 2015 the effective VA loan limits by county are the same as Fannie Mae and Freddie Mac.

Some important points about financing for vets, active-duty personnel, and members of the National Guard and Reserve:

  • Qualified individuals can purchase homes with one to four units provided that they live in one unit. The veteran must certify as to occupancy.
  • In the case of an active-duty veteran who cannot occupy because of his or her status as an active duty member of the armed forces, occupancy by the spouse can satisfy the occupancy requirement.
  • Individuals on active duty have strong protections preventing foreclosure under the Servicemembers Civil Relief Act (SCRA).

FHA Loans

The FHA loan program has loan limits for owner-occupied homes under its 203(b) program, the most-common FHA option. The FHA loan limit varies according to whether you live in a typical real estate market, a “high cost” market or you reside in Alaska, Guam, Hawaii, and the Virgin Islands.

For 2015 the FHA 203(b) loan limits look like this:

2015 FHA 203(b) Loan Limits

Property Units Low Cost “Floor” High Cost “Ceiling” Alaska, Hawaii, Guam & Virgin Islands
One $271,050 $625,500 $938,250
Two $347,000 $800,775 $1,201,150
Three $419,425 $967,950 $1,451,925
Four $521,250 $1,202,925 $1,804,375
Source: HUDOurBroker

To qualify for the FHA loans above, at least one unit must be owner occupied.

HUD has an online database which shows the latest FHA loan limits by state and county. The system can be reached by going to the FHA loan limits database.

Also, HUD has a list of Areas at Ceilings and Above and Areas Between Floor and Ceiling.

FHA-Insured Reverse Mortgages

The loan limits for FHA-insured reverse mortgages (also known as home equity conversion mortgages or HECMs) will remain at $625,500.

Copyright 2014 OurBroker.com. All Rights Reserved


Technorati Tags: , , , , , , , , , , ,

Posted in: News

Post a Comment