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Definition for FHA loan limits

Can anyone tell me if the FHA loan limits is the maximum amount of the loan I can borrow?  vs maximum amount of the purchase price.

Thanks!

Vince
  • February 20 2014 - Dallas
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Answers (6)

You received many answers with the correct answers to your question.

I do want to clarify one response that was inaccurate: FHA did not temporarily increase their loan limits. They just lowered them at the beginning of the this year. Look carefully at the results of website posted with that answer & you will see that some of the search results were from 2011.

All the best,
Ros
  • February 21 2014
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The loan limit applies to the loan amount, not the purchase price. This limit can very depending on where you live so you may want to check out the exact loan limit for your location. If you are considering an FHA loan then  [self promotion deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • February 20 2014
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Recently Congress temporarily increased FHA loan limits. Normally, your limit is based on the median price of a home in a given county. Each county has its own loan limit. See link below

https://entp.hud.gov/idapp/html/hicostlook.cfm

  • February 20 2014
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Kim & Clay are right.
We use loan amount, not purchase price to determine maximums.

  • February 20 2014
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http://www.fha.com/lending_limits_state?state=TEXAS

That's accurate, the limit is the amount of the loan, not the purchase price.  The link above shows you the 22014 loan limits for all of the counties in Texas.
  • February 20 2014
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There is no maximum purchase price. You could buy an $800K home and if the loan limit is $250K then you put down $550K.
  • February 20 2014
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