Updated FHA rates

Updated FHA rates

A reader recently brought to our attention that the Federal Housing Administration (FHA) recently announced the agency’s new schedule of loan limits, and due to an increase in housing prices, most areas in the country will see a slight increase in loan limits in 2017.

In high-cost areas, the FHA national loan limit “ceiling” will increase to $636,150 from $625,500. FHA will also increase its “floor” to $275,665 from $271,050. Additionally, the maximum claim amount for FHA-insured Home Equity Conversion Mortgages (HECMs), or reverse mortgages, will increase to $636,150. This amount is 150 percent of the national conforming limit of $424,100.

FHA loans are good options for real estate investors purchasing rental properties. They can also be a good refinancing option for fix and flippers that decide they want to become landlords or for real estate investors that needed to renovate a property before filling it with occupants.