FHA Loan Limits for 2019

FHA loans are a popular program for first time home buyers for their low down payment requirement and the ability to use gifted funds for down payments. For many buyers, FHA is the only program for which they qualify. The downside is, there are limits to amount that can be borrowed. Fortunately, FHA loan limits for 2019 are increasing in almost all areas of Massachusetts and New Hampshire.

FHA Loan Thresholds

There are two components to loan limits: nationally set thresholds and specific limits by county. Nationally, FHA sets an allowable range for limits. County-specific loan limits must be no less than the minimum and no more than the maximum. For 2019, the minimum is $314,827 and the maximum is $726,525. This is a 6.89% increase from last year.

For individual counties, the loan limit is determined by calculating 115% of the median sales price. However, the amount must fall within the national range, as noted above. So, if 115% of the median price is below $314,827, then the limit for that county will be $314,827. If 115% of the median price exceeds $726,525, then the loan limit will be $726,525. If 115% of the median price is somewhere in between the allowable range, then the exact figure is used.

FHA Loan Limits for 2019 by County

Massachusetts Counties

County Name One-Family Two-Family Three-Family Four-Family
BARNSTABLE $458,850 $587,400 $710,050 $882,400
BERKSHIRE $314,827 $403,125 $487,250 $605,525
BRISTOL $454,250 $581,500 $702,900 $873,550
DUKES $726,525 $930,300 $1,124,475 $1,397,400
ESSEX $688,850 $881,850 $1,065,950 $1,324,750
FRANKLIN $314,827 $403,125 $487,250 $605,525
HAMPDEN $318,550 $407,800 $492,950 $612,600
HAMPSHIRE $318,550 $407,800 $492,950 $612,600
MIDDLESEX $688,850 $881,850 $1,065,950 $1,324,750
NANTUCKET $726,525 $930,300 $1,124,475 $1,397,400
NORFOLK $688,850 $881,850 $1,065,950 $1,324,750
PLYMOUTH $688,850 $881,850 $1,065,950 $1,324,750
SUFFOLK $688,850 $881,850 $1,065,950 $1,324,750
WORCESTER $327,750 $419,550 $507,150 $630,300

New Hampshire Counties

County Name One-Family Two-Family Three-Family Four-Family
BELKNAP $314,827 $403,125 $487,250 $605,525
CARROLL $314,827 $403,125 $487,250 $605,525
CHESHIRE $314,827 $403,125 $487,250 $605,525
COOS $314,827 $403,125 $487,250 $605,525
GRAFTON $314,827 $403,125 $487,250 $605,525
HILLSBOROUGH $322,000 $412,200 $498,250 $619,250
MERRIMACK $314,827 $403,125 $487,250 $605,525
ROCKINGHAM $688,850 $881,850 $1,065,950 $1,324,750
STRAFFORD $688,850 $881,850 $1,065,950 $1,324,750
SULLIVAN $314,827 $403,125 $487,250 $605,525

Benefits of Higher FHA Loan Limits

Increased Buying Power

For FHA home buyers, the increased limits lead to more buying power. For instance, buyers in Dukes County, MA were previously limited to borrowing $679,650 with an FHA loan. In 2019, those same buyers can borrow up to $726,525, assuming they otherwise qualify for the higher loan amount. Given the hot market, this increase will allow buyers to better compete in bidding wars and keep up with the inclining market.

Avoiding Jumbo Loans

Another advantage is the ability to avoid jumbo loans. Jumbo loans are normally more difficult to qualify for and have slightly higher interest rates. By increasing the loan limit, some buyers can now use regular FHA loans instead of FHA jumbo loans.

Lower Down Payments

As we mentioned earlier, one of the benefits of FHA is a low downpayment option of 3.5%. However, some buyers have to put down more in order to stay within loan limits. Let’s imagine you were a buyer in Sullivan County during 2018. If you were purchasing a home for $310,000, your 3.5% down payment should be $10,850 and loan amount $299,150. Since FHA would only loan $294,515 in that county, you would have to put down an additional $4,635 ($299,150 – $294,515 = $4,625) to make up the difference. Since the loan limits for 2019 have increased to $314,827, you would not have to put down anything extra to buy a $310,000 home. In fact, you could purchase up to $326,245 with 3.5% down (again, assuming that you otherwise qualify).

Update Your Pre-approval

Now that you’re up to speed on the FHA loan limits for 2019 and how it might impact you, it’s time to get some real numbers. Contact me for a pre-approval on an FHA loan for 2019. If you have a pre-approval from 2018, I can provide new figures based on these new loan limits.

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About Chris Graves

I grew up in Massachusetts, spent the majority of my young adult life in Boston, and own a home in Windham NH. I have owned properties in MA and NH. I specialize in mortgage lending in Massachusetts and New Hampshire and my company does have the ability to lend in other states. I graduated from the University of Massachusetts in Amherst Massachusetts in 2002. I have a Bachelor’s in Science. In addition to managing a team of loan officers my personal loan production is always in the top of the entire of company. I have personally been in the mortgage business for over 13 years. I pride myself with taking my clients from application to close in the smoothest and quickest way possible, while keeping them well informed during the entire process. I originate my own loans from start to finish and work hand in hand with my loan processors & underwriters to make sure I am updated to the minute with all of my files. I stay up to date with lending guidelines and speak with underwriters on a daily basis to ensure I am aware of all of the lending guidelines in place.

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