MA FHA Mortgage Limits For This Year

The Federal Housing Administration (FHA) updates their mortgage limits on a yearly basis. Buyers must be aware of what these limits are and how they could change. The great news is, in many regions, the loan limits have improved to accommodate rising property prices. Below are a few helpful facts on MA FHA mortgage limits for this year.

An Explanation of FHA Mortgage Limits

Mortgage limits are the most that can be obtained on an FHA mortgage. The mortgage value is lower than the purchase price. For example, if you buy a house for $ 300,000.00
and your down payment is 3.5 percent , then your mortgage value comes out to $ 289,500.00

FHA Mortgage Limits Calculations

FHA mortgage limits differ by location. Median home prices are analyzed against national conforming mortgage limits. Conforming mortgages are those that fall within the Fannie Mae and Freddie Mac guidelines and may be sold to secondary mortgage markets. FHA uses 65 percent of the limit for conforming mortgages as the mark for their lower limit in low cost communities. Low cost communities are markets where 115% of the median home price is lower than 65% of the conforming mortgage limit. For higher priced areas, it can reach 150% of the national conforming mortgage limit. These cities are those where 115% of the median real estate values exceed 150% of the limit for national conforming mortgages.

MA FHA Mortgage Limits For This Year

The mortgage range is between $271,050 and $625,500. So, in no area will the limit fall under $271,500 or be higher than $625,500. This low and high matches the previous year, but most cities fall somewhere in between and will have an adjustment for this year. Adjustments are made for the type of property as well. In improvingmarkets, the FHA loan limits adjusted quite a bit this year. Buyers in regions where home values have skyrocketed may be able to increase their purchase price and have additional options to select from.

Middlesex County, Single Family $523,250
Middlesex County, Two-Family $669,850
Suffolk County, Single Family $523,250
Suffolk County, Two-Family $669,850

Specific numbers can be found at

Impact of MA FHA Mortgage Limits For This Year

It is very important to know your max sales price when viewing houses. Buying a home beyond the limit will result in a larger down payment or require you to use a different type of mortgage. For instance, if the mortgage limit is $ 500,000.00
and you plan to put a 3.5% down payment, then your price limit is $ 518,134.72
. Purchasing a house for $ 528,497.41
will require an additional $5,648 at closing to cover the difference. If you do not have these additional funds, this may be detrimental. Remember that the max purchase limit may be different for every town that you are looking in. It is a good idea to know this in advance.