FHA is set to reduce its loan limits for high cost areas beginning in 2014. The highest loan amount allowed now is $729,750 for areas like New York City, San Francisco, and Los Angeles. The new maximum will be $625,500. Other areas considered “high cost” will be reduced as well. In total it will affect 650 counties nationwide.
FHA traditionally helped first time and low income buyers. However during the economic crisis private financing for higher loan amounts dried up and FHA stepped in to fill the void. There action kept an already damaged housing market from plummeting even further. Now that the housing market is in recovery, FHA believes it’s time to pull back their involvement and return the focus to their traditional market of first time and low income buyers.
For South Carolina the current limits will remain for most areas. Most counties have a limit of $271,050. While a few are higher cost areas like Charleston, Beaufort, Berkeley, and Georgetown Counties will be reduced. Charleston, Berkeley, and Dorchester County limits will drop from $335,000 to $308,200. Beaufort County drops from $387.500 to $350,750 and Georgetown County has the biggest drop from $395,000 to $327,750. The limits increase for 2, 3 and 4 unit properties. For more information or to find out if you qualify for a low interest FHA loan, call Coastlend Mortgage today for a free approval.