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2018 FHA loan limits increase in 2018

2018 FHA Loan Limits Increased

2018 FHA loan limits were announced last week, As predicted, FHA has followed the Conventional loan limit increase raising the standard conforming loan limit to $453,100. 

FHA loan limits are tied to the County you are buying in, which is much different from Conventional loan limits.  The lowest Conventional loan limit is $453,100 across the Country, allowing up to $679,650 in High Cost Areas.

FHA loans have a low cost area loan limit of $294,515, a Conforming loan limit of $453,100, a high cost area limit of $679,650, and a special exception loan limit of $1,019,475 for Alaska, Hawaii, Guam, and the Virgin Islands.

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FHA Website: 2018 Loan Limit look up

2018 FHA Area Loan Limits – Standard

The FHA national low cost area mortgage limits are set at 65% of the new conforming loan limit of $453,100 for a one-unit, single family house.  The new low cost area loan limits are as follows:

  • 1 Unit – Single Family: $294,515
  • 2 Unit – Duplex: $377,075
  • 3 Unit – Triplex: $455,800
  • 4 Unit – Fourplex: $566,425

2018 FHA Loan Limits – High Cost

The FHA national high cost area mortgage limits are set at 150% of the new conforming loan limit of $453,100 for a one-unit, single family house.  The new low cost area loan limits are as follows:

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  • 1 Unit – Single Family: $679,650
  • 2 Unit – Duplex: $870,225
  • 3 Unit – Triplex: $1,051,875
  • 4 Unit – Fourplex: $1,307,175

2018 Special Exception Loan Limit

Loan limits for the special exception areas of Alaska, Hawaii, Guam and the Virgin Islands are adjusted by FHA to account for the high cost of construction and living in these areas.  The new special exception loan limits are as follows:

  • 1 Unit – Single Family: $1,019,475
  • 2 Unit – Duplex: $1,305,325
  • 3 Unit – Triplex: $1,577,800
  • 4 Unit – Fourplex: $1,960,750

Taking Advantage of the New Loan Limits

There is a lot to celebrate if you’re a first time home buyer using a FHA home loan in 2018.  Higher loan limits may open up buying opportunities for some buyers that found themselves previously capped by 2017 limits.

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2018 FHA loan limits will be applied to all FHA case numbers dated January 1st, 2018 forward. Most lenders will accept Conventional mortgage applications with the new loan limit as of December 2017, but FHA applications will need to wait until the new year.

This is a great opportunity for home buyers that previously found themselves unable to buy their dream home because the 2017 loan limit.

FHA Loan Limit Too Low?  The Conventional loan limit across the Country is $453,100.

About Your Expert

Scott Schang

As a 19 year veteran of the Mortgage and Real Estate industry, I am passionate about educating and empowering consumers. I have been writing about consumer protection issues, and making sense of complicated real estate and mortgage topics on this website since 2007

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  • Deidranna says:

    So they’re increasing loan limits, but a buyer still can’t qualify for a home loan due to student loan debt? 1% of student loan debt knocks people out of qualifying for a loan due to DTI ratio guidelines. What do you do?

    • Scott Schang says:

      Hi Deidranna,

      You can avoid using the 1% payment if your loans are in repayment. Even if you have an income based repayment plan with a $0 payment, you would still be eligible to use Fannie Mae financing, and use the IBR payment when calculating your DTI. Hope this helps?

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