The new 2020 FHA loan limits have been announced. Once again, the limits have increased for 1 – 4 unit residences. The FHA loan limits are determined by taking 65% of the conforming loan limit which is $510,400 for 2020. Therefore, the new one unit loan limit is $331,760. FHA loans provide buyers and home owners excellent financing options allowing for low down payment, lenient credit requirements, gift funds, cosigners, and more. Additionally, it is possible to build a brand new home with loan down payment FHA financing. Fortunately, FHA has long been a staple of mortgage lending for primary residence financing.
Where to Exceed the 2020 FHA Low Loan Limit – Hint, It is Hampton Roads!
Actually, there is more than just one FHA loan limit for 2020. Borrowers may purchase or refinance anywhere up to a 4 unit home as long as the borrower occupies one of the units. Furthermore, some higher cost counties allow for borrowers to exceed the base FHA loan limits. For these high cost counties, the FHA loan limit is set at 150% of the conforming loan limit. By increasing the FHA loan limit for these counties, it allows for more borrowers to afford homeownership. A perfect example of higher FHA loan limits exists in the Hampton Roads, VA area. Higher FHA loan limits provides more buyers the affordability and low down payment needed to buy that dream home. Below we share the national FHA loan limits as well as our local Hampton Roads loan limits.
National 2020 Low Cost FHA Loan Limit
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National 2020 High Cost FHA Loan Limit
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Hampton Roads Virginia FHA Loan Limits
The Hampton Roads area has so much to offer and is well known for its shipyards, one of the largest military installations in the U.S., and of course the beaches. Therefore, the region boasts a booming economy and growing population. Plus, OVM Financial represents the area well with OVM headquarters along with other top producing offices throughout the Virginia coast. Making up the Hampton Roads area includes Norfolk, Virginia Beach, Chesapeake, Portsmouth, Newport News, Hampton and Suffolk. Although VA loans are very popular because of the high number of service members and Veteran population, FHA loans are very popular. Below we share the FHA loan limits for each Hampton Roads area.
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So, this means that Hampton Roads buyers are able to purchase a 1 – 4 unit home with as low as a 3.5% down payment on higher price limits in comparison with most of the U.S. With the Hampton Roads median price of $319,000, these higher FHA loan limits helps many buying an above average house price. In addition to the higher loan limits, there are so many other reasons to consider FHA as your home loan choice. Check out several reasons below and then contact an OVM loan officer today.
FHA Loan Benefits
With the 2020 increased FHA loan limits, more U.S. residents are able to take advantage of the many FHA benefits. Sometimes, borrowers may need a little extra help that FHA loans provide. Examples of these FHA loan advantages include the following:
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Curious if FHA is right for you? Maybe even combining an FHA loan with a little help from down payment assistance? Contact an OVM Financial loan officer and read why so many borrowers think highly of OVM Financial.