FHA changes their loan limits every year. If you are purchasing a home and plan to use an FHA loan, it is essential to be familiar with the applicable limits and when they can change. Here are a few important facts on FHA maximum loan amounts for NH.
What Are FHA Loan Limits
Loan limits reflect maximum loan amounts meeting the requirements of an FHA loan. The loan amount is not the same as the purchase price. For example, if you purchase a home for $ 425,000.00
and are paying 3.5 percent down, then the loan amount comes out to $ 410,125.00
How FHA Loan Limits are Computed
FHA loan limits vary by community. Median real estate sale prices are analyzed against national conforming loan limits. Conforming loans meet the Freddie Mac and Fannie Mae guidelines and may be transferred in the secondary mortgage market. FHA calculates 65 percent of the limit for conforming loans and uses that as their floor in low end markets. Low end markets are communities where 115% of the median real estate market value is less than 65% of the conforming loan limit. For higher priced regions, the limit may reach 150% of the national conforming loan limits. These markets are those where 115 percent of the median real estate prices exceed 150% of national conforming loan limits.
FHA Maximum Loan Amounts For NH
The loan range is between $271,050 and $625,500. Thus, in no community will the limit drop less than $271,500 or go above $625,500. Both the low and high limits remain the same as the previous year, but most communities are not at the min or max and will thus have a difference for 2015. There are also differences between single family versus multi-family homes. Specific loan limits for your community are posted online at https://entp.hud.gov/idapp/html/hicostlook.cfm.
Importance of FHA Maximum Loan Amounts For NH
If you are pre-approved for the FHA program, you must remain cognizant of the FHA maximum loan amounts for NH. Purchasing a property over the limit may result in a larger down payment or require you to research another loan option. For instance, if the loan limit in your community is $ 300,000.00
and you have 3.5 percent down, then your price limit is $ 310,880.83
. Purchasing a home for $ 317,098.45
results in a $ 6,217.62
difference. You would need to come up with the difference. If you are a cash sensitive borrower, this can be a big problem. Don't forget that the max home price may not be exactly the same for every community that you are looking in. It is helpful to know this while you are searching for a home.