Maximum FHA Loan Limit



The Federal Housing Administration , FHA, has drastically reduced the FHA Loan Limit at the beginning of 2014 from $410,000 to $271,050 for most areas of the United States unless the property is located in a high cost area.  Most counties in California are in high cost areas and the maximum FHA loan limit for most counties in California is $625,000.  There are counties in many states where the FHA Loan Limit is higher than the standard $271,050.  Illinois is one of them.  FHA announced that the FHA Loan Limit for 2015 will remain unchanged and capped at $271,050 unless the property is located in a high cost area.  If you are looking for a higher priced home and need a mortgage loan higher than $271,050 in a particular geographical region in the United States and are planning on using a FHA loan, check to see what the maximum FHA loan limit is for your county.  Any loan officer can look it up for you.  For example, the maximum FHA loan limit in Sarasota, County Florida is $271,050 whereas the FHA loan limit is much higher in Palm Beach County, Broward County, and Miami Dade County.  FHA Loan Limits in most areas of Illinois is $271,050 except for the metropolitan and surrounding counties of Chicago; Cook County, Lake County, DuPage County, Kane County, and McHenry County.  These areas have a maximium FHA Loan Limit of $365,700.

Conventional Loan Limit

Conventional Loan Limits were not affected in the beginning of 2014.  Convential Loan Limits have remained unchanged at $417,000 and for 2015, it still remains to be capped at $417,000.  However, there are areas of the United States where the conventional loan limit is higher than the standard $417,000.  Many areas in California such as San Diego, LaJolla, San Francisco, San Jose, Los Angeles, Torrance, Irvine, Santa Monica, Palm Springs, Monterey, Sacramento, Lake Tahoe, Santa Barbara, Riverside, Davis, Burbank, Hollywood, Beverly Hills, Oakland, Anaheim, and dozens of other California counties have conventional loan limits that is much higher than the $417,000 standard conventional lending limits.  California has one of the highest housing prices in the United States.

Illinois FHA Loan Limit

Illinois’s Chicago metropolitan areas of Cook County, Lake County, DuPage County, McHenry County, and Kane County has higher FHA Loan Limits than the standard $271,0500.  Cook County, Lake County, DuPage County, McHenry County, and Kane County’s maximum FHA loan limits is capped at $365,700 because homes in these areas are classified as high cost areas per the U.S. Department of Housing and Urban Development, the parent of FHA.  The $365,700 FHA Loan Limit cap are for single family homes.  Two to four unit owner occupant homes have higher FHA Loan Limit caps.

What If I Need To Purchase A Higher Price Home?

I run into situations where home buyers need a higher mortgage than the FHA loan lending limit.  Two choices here.  The home buyer can see if they can qualify for a conventional loan where the conventional lending limit is higher, $417,000, or they need to put more down payment on their home purchase.  A home buyer can purchase a $371,050 home but if they can only qualify with a FHA loan where the FHA loan limit is $271,050, then they would have to put a $100,000 down payment.

Qualifying for a conventional loan is tougher than a FHA loan for home buyers with higher debt to income ratios, low credit scores, and prior bad credit.  Please contact me at or call me at 262-716-8151 if you need a home loan and see which loan program is the best for you.

Related> FHA releases 2015 Loan Limits

Related> Loan programs

Related> Conventional loan versus FHA loans

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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