Federal Housing Administration sets 2016 loan limit schedule, increases in 188 counties
Nation: The Federal Housing Administration announced the new schedule for loan limits for 2016.
“Due to changes in housing prices, the maximum loan limits for forward mortgages increased in 188 counties. There were no areas with a decrease in the maximum loan limits for forward mortgages,” according to the release:
“There is no change to the FHA national loan limit ‘ceiling’ which remains at $625,500 and the ‘floor’ which remains at $271,050. FHA’s minimum national loan limit ‘floor’ is set at 65 percent of the national conforming loan limit of $417,000. The floor applies to those areas where 115 percent of the median home price is less than 65 percent of the national conforming loan limit.”
“The mortgage loan limits for FHA-insured reverse mortgages will also remain unchanged. The FHA reverse-mortgage product, known as the Home Equity Conversion Mortgage (HECM), will continue to have a maximum claim amount of $625,500, with actual limits based on property value, borrower age, and current interest rates. Reverse mortgages allow homeowners age 62 and older to age in place by borrowing against the value of their homes without any requirements for monthly payments; no repayment is required as long as a homeowner lives in the home. The reverse mortgage is repaid, with interest, when the homeowner leaves the home.”
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