FHA announces new loan limits for home equity conversion mortgage and single-family title II – RISMedia


The Federal Housing Administration (FHA) recently announced new loan limits for the 2022 calendar year for its Term and Single Family Equity Conversion (HECM) Mortgage Insurance Programs (HECMs). Loan limits for most of the country will increase over the coming year due to the sharp appreciation in house prices, which is factored into the statutorily mandated calculations that the FHA uses in connection with its methodology for determining the limits each year. The new loan limits are effective for FHA case numbers assigned on or after January 1, 2022.

“The increase in loan limits, commensurate with the increase in house prices, will allow qualified individuals and families to continue to access FHA insured mortgages to obtain affordable real estate financing,” said the Assistant Secretary Senior Housing and FHA Assistant Lopa Kolluri.

The FHA is required by the National Housing Act (NHA), as amended by the Housing and Economic Recovery Act of 2008 (HERA), to set the limits on term mortgages for a single family at 115% of the median house price. , subject to a floor and a ceiling on the limits. In accordance with the NHA, the FHA calculates term mortgage limits by metropolitan statistical area (MSA) and by county.

The NHA requires the FHA to set its floor and ceiling loan limits based on the loan limit set by the Federal Housing Finance Agency (FHFA) for conventional mortgages held or guaranteed by Fannie Mae and Freddie Mac. The national compliant loan limit for 2022 is $ 647,200. The FHA 2022 national minimum loan limit of $ 420,680 is set at 65% of the national compliant loan limit. This “floor” applies to areas where 115% of the median home price is below the “floor” limit. Any area where the loan limit exceeds this “floor” is considered a high cost area, and the NHA requires the FHA to set its maximum loan limit “cap” for high cost areas at $ 970,800, which corresponds to 150% of the national compliant loan. limit.

Due to the sharp increase in median house prices and the required changes to the FHA floor and ceiling limits, which are linked to the FHFA increase in the conventional mortgage limit for 2022, the maximum loan limits for FHA term mortgages will increase in 3,188 counties. In 45 counties, FHA loan limits will remain unchanged. By law, the median price of a home for an MSA is based on the county within the MSA that has the highest median price.

Additionally, the maximum FHA insured HECM claim amount will increase to $ 970,800, from $ 822,375 for the 2022 calendar year. Current FHA HECM regulations do not allow the HECM limit to vary by MSA. or county; instead, the single HECM limit applies to all HECMs, regardless of the location of the property.

To find a complete list of FHA loan limits, FHA ceiling areas, and floor-to-ceiling areas, visit the FHA website Loan Limits page.


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