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FHA Maximum Loan Amounts For GA

March 3, 2015
From Loan Officer Eddie Kirby

From Loan Officer Eddie Kirby

The Federal Housing Administration (also referred to as FHA) adjusts their loan limits yearly. Buyers must be familiar with what these limits are and when they may fluctuate. Here is some helpful information on FHA maximum loan amounts for GA.

Definition of FHA Loan Limits

Loan limits reflect the most that may be obtained on an FHA loan. The loan amount is lower than the purchase price. For example, if you find a house for $ 325,000.00 and are submitting 3.5 percent down, then the loan amount is $ 313,625.00.

FHA Loan Limits Calculations

FHA loan limits range by community. Median home values are analyzed against the national conforming loan limits. Conforming loans comply with Fannie Mae and Freddie Mac guidelines and may be sold to the secondary mortgage market. FHA calculates 65 percent of the limit for conforming loans to set their floor for low cost markets. Low cost markets are ones where 115% of the median real estate market value is less than 65% of the conforming limit. For high end markets, the limit can reach 150% of limits for national conforming loans. These markets are those where 115 percent of the median real estate price is higher than 150% of national conforming loan limits.

FHA Maximum Loan Amounts For GA

In low cost markets, the loan limit is $271,050. Loan limits for high end markets is $625,500. Thus, in no area will it fall under $271,500 or be more than $625,500. Both the low and high end figures match 2014 figures, but most communities fall somewhere in the middle and will thus see a change for this year. There are also adjustments for single family and multi-family houses. Exact numbers can be found at https://entp.hud.gov/idapp/html/hicostlook.cfm.

Importance of Understanding FHA Maximum Loan Amounts For GA

If you are pre-approved for the FHA program, you should remain aware of the FHA maximum loan amounts for GA. Purchasing a home above the max may require more money down or require you to change to a different type of loan. For instance, if the loan limit is $ 425,000.00 and you intend to put a 3.5% down payment, then your price limit is $ 440,414.51. Selecting a home for $ 449,222.80 leads to a $ 8,808.29 shortage. The home buyer would need to cover that difference. If you do not have the additional funds, this may prevent the deal from occurring. Don’t forget that the max purchase limit might not be exactly the same for every community that you are looking in. It is helpful to know this while you are searching for a home.

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