Every year FHA adjusts their maximum financing limits. The limits are based on a percentage calculation of the national conforming loan limit. This year the minimum loan amount in low cost areas is $271,050, this did not change from 2015. In areas that have a higher housing cost, the limits are higher.
This year in the Minneapolis St Paul area, the maximum loan amount is $326,600. This is an increase from 2015, the limit this year was $322,000. The counties included in this limit are Hennepin, Ramsey, Dakota, Carver, Anoka, Sherburne, Sibley, Chisago, Isanti, Le Sueur, Mille Lacs, Scott, Washington and Wright. Other areas in MN are limited to the max loan amount of $271,050.
For those interested in reverse mortgages, the limits did not change.
Fannie Mae and Freddie Mac also announced their loan limits for 2016, but they didn't make any changes in this area. Minnesota is still capped at $417,000 for conforming loan limits.
With FHA increasing their limits slightly, it will help home buyers that are looking to use FHA financing. It can also help if you are looking at using a FHA 203K rehab loan. Now you can go up to $326,600 for rehab loans also.
FHA loans are a great way to purchase a new home, whether it's your first home or not! If you do not have 20% down, FHA only requires 3.5% down. Talk to your lender about FHA financing and see if it makes sense for you!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc, An Equal Housing Lender, NMLS#150953 - Email - Website
