On December 8, 2017, FHA issued Mortgagee Letters 2017-16 and 2017-17, announcing a new schedule of Nationwide Loan Limits for 2018 for forward and Home Equity Conversion Mortgages (HECM’s). These limits are effective for FHA case numbers assigned on or after January 1, 2018.
In high cost areas of the nation, FHA’s loan limit ceiling for forward mortgages will increase to $679,650 from $636,150. In low cost areas FHA will increase its floor to $294,515 from $275,665. In addition, the limit for FHA-insured HECM’s will increase to $679,650 from $636,150. FHA’s increases in the limits are tied to the Federal Housing Finance Agency’s increase in the conventional mortgage loan limit for 2018.
Mortgagee Letters 2017-16 and 2017-17 are available at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee.
HUD’s press release on the new FHA mortgage limits is available at: https://hud.gov/press/press_releases_media_advisories.