What is the Maximum FHA Loan Amount? The FHA loan limit is a largely misunderstood subject. It’s not just about how much you can borrow, but what your FICO score has to be to qualify for this maximum amount. This article explains all of these confusing concepts!
The Confusing Subject of What is the Maximum FHA Loan Amount?
The FHA loan limit is set at $424,100. If you are a first-time homebuyer, the FHA can lend you up to that amount. There are also many other non-FHA loans that have different maximums as well. One of the most common questions asked about loans is what is the maximum FHA loan amount?
It is not uncommon to hear that the credit-based maximum FHA loan amount is just $729,750. However, there are many pros and cons to this information. While it may be true that a person can expect to pay $729,750 with a maximum FHA loan if they have enough credit history, their income must also be high enough in order for them to pay back the loan after interest is considered.
When Can I Qualify for the Maximum FHA Loan Amount?
The FHA (Federal Housing Administration) was created in 1934 to help improve the availability of decent, affordable housing. The FHA is a government-sponsored mortgage insurer that protects lenders against default by insuring mortgages made to qualified borrowers. The maximum loan amount for the FHA is $729,750.
Most people do not know that the maximum FHA loan amount is $636,150. This amount includes the home’s sales price, taxes and insurance. The minimum FHA loan amount is up to $127,400 and there is no maximum limit on the type of property you can buy.
The Actual Loan Limit
The FHA loan limit for 2017 is $424,100.
The maximum FHA loan amount is $424,100. This is the highest loan limit for any type of mortgage and it’s based on the current average home price in your area. There are other factors that will determine how much you can borrow, but this is a good starting point for those who aspire to buy their home with an FHA loan.
Minimum Credit Score to Qualify for the Maximum FHA Loan Amount
The maximum loan amount available to you through the FHA is $625,000. The minimum credit score that is required to qualify for this loan amount is 580.
To qualify for the maximum loan amount on an FHA mortgage, you need a credit score of 580. Any score below that is considered subprime and so is not eligible.
Conclusion
For the maximum loan amount, Fannie Mae and Freddie Mac have a max limit of $625,500. This includes the purchase price of the home plus an additional 20% for repairs and improvements.
This blog post is mainly aimed to provide the readers with a general understanding of the maximum FHA loan amount and what factors are taken into account when determining it.