FHA Loan Limits
The Federal Housing Administration (FHA) was created in 1934 to help the American population in the Depression Era buy a home during an extremely unstable and substandard housing market conditions. The FHA Loan, developed by the U.S. Department of Housing and Urban Development (HUD), focuses on helping the working and middle class Americans become homeowners.
FHA programs work by providing insurance to commercial lenders in case a loan, meeting FHA guidelines, goes into default by a homeowner. The creation of FHA backed loans have allowed for many Americans to purchase homes with a much lower monthly payment (extended for a longer period of time) and a much smaller down payment.
In keeping with HUD's original vision of providing opportunities to those purchasing low-to-mid-priced homes; there has always been a cap on the size of a loan that the FHA will insure, known as the FHA Loan Limit. The FHA Loan Limit is adjusted annually and is derived from the median cost of a home in any given metropolitan area (MSA). Because each MSA housing values are different, this FHA Loan Limit varies from state to state and county to county. In 2009, the largest FHA Loan Limit was set at $729,750 in the San Francisco area while the limit in Springfield, Missouri was only $271,050.
For more information on FHA Loan Limits in your area, simply visit our site. Just choose your state and county for immediate access to the FHA Loan Limit current set in your current location.