To close the year, the Federal Housing Administration is giving homeowners the gift of setting new loan limits for the popular FHA loan program. The new maximum amount is $1 million for more pricier neighborhoods. Loan limits will increase in more than 3,000 counties across the nation, potentially providing homebuyers with padded resources to make the purchase of a lifetime.

The housing agency is tasked with making adjustments as appropriate to help meet the needs of today’s homebuyers.

An FHA loan is backed by the Federal Housing Administration. As such, lenders that administer the loan program can extend more lenient lending requirements to borrowers. Borrowers can apply with confidence even though their credit scores may need a little rehabilitation. They also do not need to worry about providing an oversized down payment. Because of these characteristics, FHA lending programs are popular among first-time homebuyers or individuals who have purchased a home before, but have not owned one for several years.

New floor and ceiling limits are set for the FHA’s lending program and are based on property size and price. A complete list of the loan limits can be found by visiting the housing agency’s website.

The updates may help ensure more families have access to lending services. With an FHA loan, borrowers may be able to go after homeownership with extra financial tools and resources that could get the job done.

The changes, which reflect market trends and consumer demand, go into effect beginning January 2023.

If you have any questions about how an FHA loan works, or what the requirements are, don’t hesitate to contact us today. We take pride in helping homebuyers reach their dreams and we will have your back throughout the entire purchase process.