FHA Loan Limits to Increase in 2017 Roger Odoardi Reading Time: 2 minutesIf you were house-hunting in 2016, you probably noticed some above-average price tags on homes of all sizes. Well, you weren’t alone. Home prices nationwide saw significant increases. But the good news is that FHA loans for 2017 will also increase. Earlier this month, the Federal Housing Administration (FHA) announced that most parts of the country – 2,948 counties to be exact – will see a rise in FHA loan limits for 2017. Counties in Massachusetts and New Hampshire are a part of this upcoming increase for Massachusetts mortgages and New Hampshire Mortgages. According to Zillow, home values across the country increased by about 6% during 2016. Some major metropolitan areas saw double-digit price increases, which resulted in median home prices rising above the current FHA loan limit. With the FHA loan limit increase, high-cost areas will see the “ceiling” increase from $625,500 to $636,150. The FHA is also increasing the “floor” from $271,050 to $275,665. In Massachusetts, the median home value rose 6% this year to $358,600. It’s expected by Zillow that this price will increase by about 3.2% throughout 2017. For New Hampshire, home prices are valued at a median of $235,300, which is 5.2% higher than last year. Homes in the Granite State are predicted to rise by 3.3% in the next year. What is an FHA Loan? FHA loans are mortgages that are insured by the Federal Housing Administration, which is an agency under the U.S. Department of Housing and Urban Development. Borrowers pay for mortgage insurance, which enables lenders to offer loans at affordable interest rates with more flexible requirements and lower down payments. The insurance that borrowers pay for protects the lender from losing money in an instance that the borrower ends up defaulting on the loan. How Do I Qualify for an FHA Loan? If you’re unsure whether or not you may qualify for a certain type of mortgage loan, make sure to speak with an experienced mortgage broker who can help you determine your eligibility. The team at Blue Water Mortgage has helped countless borrowers find plans that are ideal for their unique situation – both financially and personally. Don’t hesitate to contact us with any questions you may have. Disclaimer: Blue Water Mortgage is not directly endorsed by FHA nor are we affiliated with the FHA. Roger Odoardi Roger is an owner and licensed Loan Officer at Blue Water Mortgage. He graduated from the University of New Hampshire’s Whittemore School of Business and has been a leader in the mortgage industry for over 20 years. Roger has personally originated over 2500 residential loans and is considered to be in the top 1% of NH Loan Officers by leading national lender United Wholesale Mortgage.
