FHA Condo Approval Specialist: NEW FHA Loan Limits Effective 1/1/2014

NEW FHA Loan Limits Effective 1/1/2014

NEW FHA Loan Limits Effective 1/1/2014


I found it ironic that on the same day that I posted an article about the FHA Loan Limit Search Tool, FHA released Mortgagee Letter 13-43 regarding FHA Maximum Loan Limits Effective for case numbers assigned 1/1/2014-12/31/2014.  It looks like this tool will come in handy in a very short period of time!

The changes to the maximum loan limits in this Mortgagee Letter applies only to Forward MortgagesFor starters, the Loan Limit "Ceiling" in high cost metropolitan areas will be reduced from $729,750 to $625,500 except for Hawaii, Alaska, Guam and Virgin Islands.  This chart below shows the high cost floor and ceiling for non-exception areas.

FHA high cost floor and ceiling table

For the exception areas:

FHA loan limits for Alaska and Hawaii

The "floor" is equal to 65% of the national conforming loan limit ($417,000 for a single-family) for areas where the 115% of the median home price is below this amount.  The "ceiling" is calculated as 150% of the national conforming loan limit.  Anything between the "floor" and "ceiling" is considered a high cost area.

For areas where 115% of the median home price is between the floor and ceiling, the maximum mortgage amounts are determined by HUD.  The list of these areas can be found in Attachment II of the Mortgagee Letter.

Maximum mortgage limits are set either by county or by MSA (Metropolitan Statistical Area).  Of the 3000 areas nationally, 2014 FHA loan limits have increased in 89 of them.  Conversely, 2014 FHA loan limits have decreased in approximately 651 of them.

The loan limits for HECMs, or Reverse Mortgages, will remain at $625,500, which is 150% of the maximum loan amount for Freddie Mac conforming loans which is $417,000.

Streamline Refinances without Appraisal are not subject to established by Section 203(b)(2) of the National Housing Act.  They are subject to the maximum mortgage amounts in Section 223(a)(7) of the National Housing Act.  Therefore, this Mortgagee Letter has no impact on streamline refinances without an appraisal.

Image courtesy of Stuart Miles/freedigitalphotos.net

The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA.  We have assisted nearly 200 condominiums and we can help your association.


ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.


Please contact us with any questions regarding FHA or VA condominium project approvals.  You can email me at askeric@readysetloan.com or call me at 404-433-4565. I will be happy to answer any of your questions.


FHA/VA Condo Approval Specialist

404-433-4565 Cell Phone

860-644-3772 Fax Phone

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 Check out our article in Common Interest magazine on page 19!

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Comment balloon 1 commentReadySetLoan Condo Approval Team • December 09 2013 07:50AM


Unfortunately with these loan limits there are a number of loans I would not have been able to do. More and more home owners will be harmed by lowering loan limits.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) over 5 years ago