FHA Increases Loan Limits for 2024
Exciting News for Home Buyers and Investors: FHA Increases Loan Limits for 2024
Introduction
Great news for those looking to step into the housing market or expand their real estate investments in 2024! The Federal Housing Administration (FHA) has made a significant announcement that could open up more opportunities for you. As an Orange County resident and realtor, I'm excited to share how these changes could benefit you and our local community.
Key Update
The FHA has announced an increase in loan limits, effective from January 1, 2024. This change comes in response to the nationwide rise in median home prices, ensuring that FHA loans remain a powerful tool for home buyers and investors.
Details of the New Loan Limits
Understanding the new limits is crucial. The FHA has two primary limits - the floor and the ceiling. For 2024, the floor limit for single-family home loans has risen from $472,030 to $498,257. The ceiling, which represents the maximum loan amount the FHA will insure, has increased from $1,089,300 to $1,149,825. For areas like Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the ceiling goes even higher, up to $1,724,725.
Table for 2024 FHA Loan Limits
| Property Size | Low-Cost Area “Floor” | High-Cost Area | Special Areas Ceiling |
|---|---|---|---|
| One-Unit | $498,257 | $1,149,825 | $1,724,725 |
| Two-Units | $637,950 | $1,472,250 | $2,208,375 |
| Three-Units | $771,125 | $1,779,525 | $2,669,275 |
| Four-Units | $958,350 | $2,211,600 | $3,317,400 |
Impact on Orange County
For Orange County residents, these new limits mean increased borrowing power, especially in our high-cost housing market. This adjustment is a boon for first-time homebuyers and seasoned investors alike, offering more flexibility and options in our vibrant real estate landscape.
HECM Program Update
Additionally, the FHA has raised the loan limits for its Home Equity Conversion Mortgage (HECM) program to $1,149,825, effective January 1, 2024. This is particularly relevant for seniors considering a reverse mortgage.
Additional Information
For those keen on exploring these new opportunities, detailed information about the 2024 FHA loan limits by Metropolitan Statistical Area (MSA) or county can be found on FHA’s loan limits page.
Conclusion
The increase in FHA loan limits for 2024 is a positive development, potentially making homeownership more accessible and appealing. Whether you're looking to buy your first home or expand your investment portfolio, these changes can provide more flexibility and options.
Contact Information
For personalized assistance and more information on how these changes can benefit you, please feel free to reach out to me, Bernice Devries, at Kastell Real Estate Group. I'm here to help you navigate the Orange County real estate market with these new FHA loan limits in mind.
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