Dec 15, 2018

The Federal Housing Administration (FHA) announced their new loan limits for 2019. In high-cost areas, such as Los Angeles and Orange Counties, the new FHA loan limit ceiling increased to $726,525, up from $679,650 in 2018. These new loan limits will be effective for FHA loans registered on or after January 1, 2019.

The FHA sets single-family loan limits at 115% of median house prices, subject to a floor and a ceiling on the limits. The FHA calculates these mortgage loan limits by Metropolitan Statistical Area and county. The 2019 minimum national loan limit (floor) of $314,827 is at 65% of the national conforming loan limit of $484,350. This applies to areas where 115% of the median home price is less than the floor limit. Any areas where the loan limit exceeds this floor is considered a “high-cost” area and the FHA is required to set their maximum loan limit (ceiling) for “high cost” areas at 150% of the national conforming loan limit.

To see the FHA’s announcement of these changes visit their website by clicking HERE.