Loan Limit Updates
FHA and VA have announced updates in response to the 2019 loan limit increase. New Penn Financial systems will be ready to support the increased limits. Please read below for the allowances pertaining to the requirements associated with eligibility for the increased limits.
FHA Mortgagee Letter 2018-11 announced new maximum loan amount limits effective for case numbers assigned on or after January 1, 2019.
The FHA national low-cost mortgage limits are set at 65% of the national conforming limit of $484,350 for a one-unit property. The current standard loan limit for low-cost areas will change to $314,827. The new national-ceiling loan limit for the very highest cost areas will be change to $726,525. Areas are eligible for FHA loan limits above the national standard limit, and up to the national ceiling level, based on median area home prices. Additional information and loan limit adjustments for two-, three-, and four-unit properties, and in Special Exception Areas, are noted in FHA Mortgagee Letter 2018-11.
VA Circular 26-18-27 announced that the 2019 county loan limits have been posted. These limits apply to all loans closed on or after January 1, 2019. VA loan limits are based on county median home values reported by the Federal Housing Administration. These values are the basis for which VA calculates limits for the program.
There is no maximum Department of Veterans Affairs (VA) home loan, which means lenders can make VA loans in excess of the loan limit for a county. However, VA’s guaranty will be limited to 25 percent of the county loan limit. VA product profiles should be referred to for maximum exposure and down payment requirements.
The full circular can be accessed via the following link: VA Circular 26-18-27.
Please reference the NPF Lending Library for the changes outlined in this announcement.