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FHA Loan Limits to Increase For 2019

The Federal Housing Administration, or FHA, announced the new loan limits for 2019, raising the caps in the majority of the country to $314,827 from $294,515. For high-cost areas, the ceiling is raised to $726,525 from $679,650.

These changes will go into effect on Jan. 1, 2019.

This follows the FHFA loan limit increase announced recently, with more than 3,000 counties getting the 7 percent boost for FHA loans, while 181 counties will remain unaffected by the changes.

Limits are set per the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008, which mandates that the FHA must calculate loan limits based on median home prices by metro area.

This is good news for borrowers hoping to crack the current housing market who don’t have a large down payment. As always, FHA loans allow for as little as a 3.5% down payment, even on these new, larger loan limits. The higher limits coupled with cooling prices in many areas of the country might help FHA borrowers in 2019.

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