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Home / Real Estate Information / Home Buyer Tips / MA FHA Loan Limits For This Year

02.06.15 Home Buyer Tips, Mortgage Information

MA FHA Loan Limits For This Year

FHA adjusts their loan limits on a yearly basis. Home buyers must be aware of what these limits are and when they might fluctuate. Below is some useful information on MA FHA loan limits for this year.

An Explanation of FHA Loan Limits

Loan limits reflect highest loan amounts qualifying for an FHA loan. The loan amount is less than the purchase price. For example, if you purchase a house for $ 300,000.00
and are submitting 3.5% down, then the loan amount is $ 289,500.00
.

How FHA Loan Limits are Calculated

FHA loan limits range by location. Median real estate sale prices are analyzed against limits for national conforming loans. Conforming loans meet Fannie Mae and Freddie Mac guidelines and may be sold to secondary mortgage markets. FHA takes 65 percent of the limit for conforming loans as the mark for their bottom limit for low end areas. Low end areas are cities where 115% of the median real estate sales price is lower than 65% of the conforming limit. For higher priced communities, the limit can reach 150% of national conforming loan limit. These areas are those where 115 percent of the median real estate values exceed 150% of limits for national conforming loans.

MA FHA Loan Limits For This Year

The loan range is $271,050 and $625,500. Thus, in no case will it fall less than $271,500 or go above $625,500. This floor and ceiling matches 2014 figures, but many cities are not at this min or max and will notice a change for this year. Additionally, there are different limits for different property types. You may find exact figures at https://entp.hud.gov/idapp/html/hicostlook.cfm.

Why Is It Important to Understand MA FHA Loan Limits For This Year

It is necessary to know the max purchase price throughout the buying process. Selecting a property beyond the limit may result in a larger down payment or require you to switch to another loan program. For instance, if the loan limit is $ 300,000.00
and you can only submit a 3.5 percent down payment, then your price limit is $ 310,880.83
. Purchasing a home for $ 317,098.45
will result in another $5,648 in up-front costs to make up the difference. If you do not have the extra money, this can stop the purchase from completing successfully. Remember that the max price limit might not be the same for each town that you are looking in. It is a good idea to know this before negotiating an offer.

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Tags: FHA, loan

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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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  • Local Information (61)
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  • Real Estate Information (176)
    • Featured Properties (2)
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Disclosure

Company NMLS 1788.
Licensed by the New Hampshire Banking Department #13092-MB.
Licensed in Massachusetts.
Licensed in Maine.
Licensed in Florida.
Lender and Broker License #MC-1788 (Not Licensed in Alaska or New York)
http://www.nmlsconsumeraccess.org
Click Here for Our Privacy Policy

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