New home loan limit impacts your home purchase or refinance plan in 2016? Contact our home loan agent in San Ramon.

Know your Home loan limit in San Ramon


188 Counties Home Loan Limit rose from the 2015 Limit

WASHINGTON – The Federal Housing Administration (FHA) today announced the agency’s new schedule of home loan limit for 2016. These home loan limits are effective for case numbers assigned on or after January 1, 2016, and will remain in effect through the end of the year. Contact our home loan agents in San Ramon to discuss how this may impact your home purchase or refinancing in 2016.

Due to changes in housing prices, the maximum home loan limits for forward mortgages increased in 188 counties.  There were no areas with a decrease in the maximum home loan limits for forward mortgages.

Each year, FHA recalculates its home loan limits based on 115 % of the median house price in the area. For counties, or equivalent, located in Metropolitan Statistical Areas (MSAs) the limit for all areas in the MSA is calculated based on the highest cost county.

There is no change to the FHA national home loan limit “ceiling” which remains at $625,500 and the “floor” which remains at $271,050.   FHA’s minimum national home 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 home loan limit.

Any area where the home loan limit exceeds the “floor” is considered a high cost area. The maximum FHA loan limit “ceiling” for high cost areas is 150 percent of the national conforming limit.

The mortgage home 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.

Questions? Contact Golden Pacific Home Loans in San Ramon for home loan, mortgage and refinancing consultation.

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