FHA has posted the mortgage limits for the 2018 calendar year. These figures are updated yearly based on historical sales in each of the counties. If you plan to buy a home during 2018 and wish to obtain an FHA mortgage, these limits will be important. The following are the new 2018 FHA mortgage limits for Washington.
Mortgage limits are the maximum amount that FHA will loan to you. It is not equal to the purchase price since your down payment will account for part of the price. For instance, if you purchase a house for $ 325,000.00 and you have a down payment of 3.5% , then your mortgage value will be $ 313,625.00 .
FHA mortgage limits range by market. Median home sale prices are compared to national conforming mortgage limits. Conforming mortgages are those that meet the Fannie Mae and Freddie Mac guidelines and may be transferred in secondary mortgage markets. FHA takes 65 percent of the conforming mortgage limit to set their floor in low end areas. Low end areas are areas where 115% of the median property value is lower than 65% of the conforming mortgage limit. For high end communities, the limit goes as high as 150% of the national conforming mortgage limits. High end markets are ones where 115% of the median home values exceed 150% of national conforming mortgage limit.
Mortgage limits can vary from region to region, but must nevertheless stay with a specific floor and ceiling. The floor applies to low end areas and the ceiling for high priced communities. For 2018, the lowest limit (even in regions where median home prices may be lower), is $294,515. The ceiling is the highest amount allowed even in places where median house prices are higher. The ceiling for 2018 is $625,500. Many places end up somewhere in the middle. These figures are for single family purchases. Higher limits apply to multi-family purchases, based on the number of units. Here are some FHA mortgage limits for nearby counties:
Columbia and Wala Wala County, Single Family $294,515
Columbia and Wala Wala County, Two-family $377,075
Columbia and Wala Wala County, Three-Family $455,800
If your community does not appear here, check the HUD website at https://entp.hud.gov/idapp/html/hicostlook.cfm for the full list.
Many markets across the country are fairly active with competing offers and bidding wars. As you negotiate home prices, it is important to keep the mortgage limits in mind. You might otherwise accidentally offer more than what you should. You may, of course, exceed the limit if you can make up the difference. Additionally, if you are searching in more than one location, always confirm the limits for each. Speak to your loan consultant for additional information.