Effective New Year’s Day, FHA has reduced loan limits in some markets. What this means to homebuyers is a lower loan amount that can be financed through FHA’s loan programs.
This reduction in limits is part of HUD’s plan to reduce their overall exposure in the mortgage market. The change was initiated in High Cost Areas of the country (not NC and SC) and reduced the maximum loan amount in those areas to $625,500. The floor loan amount, which has been the limit in many NC and SC counties, did not change and remains at $271,050.
Some markets in the Carolinas have been impacted, as FHA has changed the formula it uses to determine the limits.
For information on other NC and SC counties, please reference this list.
If you are an active home buyer who needs a loan with the higher loan limits, you must submit a completed application with all documents (including a fully executed sales contract) to your lender and obtain a case number before December 31, 2013. Otherwise, the lower limits will apply.
For questions about FHA and other home financing, contact an Allen Tate Realtor or Allen Tate Mortgage Consultant.
AllenTate Mortgage NMLS #79543
Loans available in NC/SC
By: Lisa Green (Vice President of Loan Origination)