Borrowers of FHA-insured loans can apply for higher loan amounts in 2017 in light of an increase in housing prices. The 2017 FHA loan limits correspond with the rise of conforming loan limits next year as announced by the Federal Housing Finance Agency.
The increased loan limits for FHA forward mortgages will be felt in most counties in the U.S. while all areas in the country will benefit from a higher reverse mortgage limit, effective January 1, 2017.
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FHA Forward Mortgage Limits
Per its December 1 announcement, the Federal Housing Administration (FHA) will increase the national loan limit “ceiling” to $636,150 and “floor” to $275,665 for the calendar year 2017.
This means the 2017 maximum loan limit for low-cost counties is $275,665, up from $271,050 in 2016.
For high-cost areas, the maximum loan limit will increase to $636,150 in 2017, from 2016’s $625,500.
Low-Cost vs High-Cost Areas
The FHA national mortgage limits are set at (i) 65% of the national conforming limit of $424,100 for low-cost areas, and (ii) 150% of the same national conforming limit for high-cost areas.
The 2017 FHA loan limits for low-cost and high-cost areas in 2017 by property type are, as follows:
| Property Type | 2017 FHA Low-Cost Loan Limits | 2017 FHA High-Cost Loan Limits |
| One-unit home | $275,665 | $636,150 |
| Two-unit home | $352,950 | $814,500 |
| Three-unit home | $426,625 | $984,525 |
| Four-unit home | $530,150 | $1,223,475 |
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According to the FHA:
- About 2,948 counties will see an increase of their maximum loan limits in 2017.
- About 286 counties will have the same maximum loan limits as in 2016.
- No counties will see a decrease in their maximum loan limits in 2017.
FHA Reverse Mortgage Limits
Senior borrowers will claim higher amounts as the maximum loan limit for HECMs will rise to $636,150 in 2017, from $625,500 in 2016.
The higher HECM limit is applicable to all U.S. counties.
Special Exceptions
The FHA has adjusted the loan limits on forward mortgages for Alaska, Guam, Hawaii and the Virgin Islands. This is to account for higher costs of construction in those areas.
The maximum loan limits for these special exception areas are:
- $721,050 for one-unit homes.
- $923,050 for two-unit homes.
- $1,115,800 for three-unit homes.
- $1,386,650 for four-unit homes.
As to reverse mortgages, the 2017 loan limit of $636,150 applies to them.
A full list of the 2017 FHA loan limits is accessible here.
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