2016 Updated FHA Loan Limits

FHA Maximum Mortgage Amounts For Columbus, OH

FHA adjusts their mortgage limits on a yearly basis. If you are purchasing a house soon and intend to apply for an FHA mortgage, it is helpful to know what these limits are and how they could fluctuate. The great news is, in many regions, the loan limits have gone up to reflect the changing market. Below is some useful information on FHA maximum mortgage amounts for Columbus, OH.

Definition of FHA Mortgage Limits

Mortgage limits reflect maximum mortgage amounts qualifying for an FHA mortgage. The mortgage amount is less than the sales price. For instance, if you buy a house for $ 375,000.00 and are submitting a 3.5 percent down payment, then the mortgage amount will be $ 361,875.00 .

How Are FHA Mortgage Limits Computed

FHA mortgage limits differ by market. Median real estate sale prices are measured against the national conforming mortgage limits. Conforming mortgages are ones that comply with the Fannie Mae and Freddie Mac guidelines and can be transferred in the secondary mortgage market. FHA calculates 65 percent of the limit for conforming mortgages as the mark for their lower limit for low end markets. Low end markets are communities where 115% of the median real estate market price is less than 65% of the conforming mortgage limit. For higher priced communities, the limit may reach 150% of limits for national conforming mortgages. These communities are those where 115 percent of the median home price is higher than 150% of the national conforming mortgage limit.

FHA Maximum Mortgage Amounts For Columbus, OH

In low end markets, the mortgage limit is $271,050. Mortgage limits for high end regions is $625,500. So, in no case will it be less than $271,500 or exceed $625,500. Both the low and high limits match last year’s figures, but most communities are not at this min or max and will thus see an adjustment for 2016. There are also adjustments for single family versus multi-family homes. In competitive markets, the FHA loan limits increased significantly this year. This will enable home buyers to better compete for homes for sale and up their price range.

County Name State One-Family Two-Family Three-Family Four-Family Median Sale Price
FRANKLIN OH $316,250 $404,850 $489,350 $608,150 $271,000

Exact figures can be found at https://entp.hud.gov/idapp/html/hicostlook.cfm.

Importance of FHA Maximum Mortgage Amounts For Columbus, OH

It is important to know your maximum sales price during your property search. Buying a house over the max may require more money down or require you to change to another mortgage program. For instance, if the mortgage limit in your region is $ 500,000.00 and you have a 3.5% down payment, then your maximum price is $ 518,134.72 . Purchasing a home for $ 528,497.41 will result in another $5,648 at closing to make up the difference. If you are a cash sensitive home buyer, this can not be possible. Remember that the maximum purchase limit may not be the same for every city that you are looking in. It is helpful to know what they are while you are searching for a home.