The Federal Housing Administration (FHA) reviews their mortgage limits on a yearly basis. Buyers should know them and how they can change. Below is an overview of the updated FHA mortgage limits for Florida.
What Are FHA Mortgage Limits
Mortgage limits reflect the most that can be borrowed on an FHA mortgage. The mortgage amount is not the same as the sales price. For instance, if you buy a home for $ 300,000.00
and your down payment is 3.5 percent , then your mortgage amount will be $ 289,500.00
How FHA Mortgage Limits are Calculated
FHA mortgage limits vary by state and city. Median home sale prices are measured against limits for national conforming mortgages. Conforming mortgages comply with the Freddie Mac and Fannie Mae guidelines and can be transferred in the secondary mortgage market. FHA uses 65% of the conforming mortgage limit as the mark for their floor for low end communities. Low end communities are towns where 115% of the median home sales price is less than 65% of the conforming mortgage limit. For high end communities, the limit may reach 150% of limits for national conforming mortgages. High cost communities are those where 115% of the median real estate values exceed 150% of limits for national conforming mortgages.
Updated FHA Mortgage Limits For Florida
The mortgage range is $271,050 and $625,500. Thus, in no area will it be less than $271,500 or be greater than $625,500. This low and high matches the previous year, but many communities fall somewhere in between and will therefore see a difference for 2015. There are also differences for single family and multi-family houses. Specific mortgage limits for your community are available online at https://entp.hud.gov/idapp/html/hicostlook.cfm.
Impact of Updated FHA Mortgage Limits For Florida
If you intend to use an FHA mortgage, you must remain aware of the updated FHA mortgage limits for Florida. Purchasing a property beyond the max will require you to put a larger down payment or require you to revert to another mortgage program. For example, if the mortgage limit is $ 375,000.00
and you intend to submit a 3.5 percent down payment, then your max home price is $ 388,601.04
. Purchasing a house for $ 396,373.06
leads to a $ 7,772.02
shortage. You would need to provide those funds. If you do not have it, this can create a big problem. Do not forget that the max purchase limit might be different for every city that you are looking in. It is a good idea to know what they are in advance.