Effective 1/15/2012: Maximum FHA Loan Amounts Reinstated to Higher Limits Again
The maximum FHA loan amounts for Pennsylvania mortgages have changed again. Previously these maximum loan amounts had reset back to the lower pre-2008 maximum loan amounts after the time limit on the temporary increase had expired. Pressure from the housing industry and the home buying public helped push a reinstatement through Congress and the Oval office to increase the FHA loan limits back to the limits that have been in place since 2008. These reinstated temporary maximum FHA loan limits will be in effect through at least the remainder of 2012. These limits will be looked at again at the end of 2012. Hopefully, a more permanent change to the maximum FHA loan amounts will be put in place then.
For example, when the increase expired, somebody looking to obtain an FHA mortgage in Pittsburgh and the Pittsburgh region saw their maximum FHA loan amount reduced from $327,500 to $271,050. With the reinstatement of the higher FHA loan limits, this same home buyer or homeowner saw that limit reinstated to $327,500. This higher loan amount availability is enough to make the difference between some people being able to purchase a home or not. It could also make the difference between qualifying for a budget saving FHA refinance or not.
The areas that are primarily affected by the reinstatement of the FHA loan limits are the areas in Pennsylvania that are considered “high cost”. The government determines these high cost areas based on median income. Generally these high cost areas are located in population centers and metro areas that also have higher costs of living and higher real estate costs.
The high cost regions in Pennsylvania as defined by the FHA include…
Philadelphia FHA Mortgage region
Pittsburgh FHA Mortgage region
Allentown – Bethlehem – Easton FHA Mortgage region
Reading FHA Mortgage region
York FHA Mortgage region
Hey wait a minute….. Why does Pike County have such a high FHA Mortgage Limit?
Pike County is located in the far northeast corner of Pennsylvania. The FHA’s regional map is including Pike County in the New York City regional area. This regional area is the highest of the high cost areas of the country and thus Pike County has a much higher maximum FHA loan limit.
Below is the new maximum loan amount for FHA mortgages in Pennsylvania for Single Family Residences.
Adams
$271,050
Allegheny
$327,500
Armstrong
$327,500
Beaver
$327,500
Bedford
$271,050
Berks
$300,000
Blair
$271,050
Bradford
$271,050
Bucks
$420,000
Butler
$327,500
Cambria
$271,050
Cameron
$271,050
Carbon
$402,500
Centre
$280,000
Chester
$420,000
Clarion
$271,050
Clearfield
$271,050
Clinton
$271,050
Columbia
$271,050
Crawford
$271,050
Cumberland
$271,050
Dauphin
$271,050
Delaware
$420,000
Elk
$271,050
Erie
$271,050
Fayette
$327,500
Forest
$271,050
Franklin
$271,050
Fulton
$271,050
Greene
$271,050
Huntingdon
$271,050
Indiana
$271,050
Jefferson
$271,050
Juniata
$271,050
Lackawanna
$271,050
Lancaster
$383,750
Lawrence
$271,050
Lebanon
$271,050
Lehigh
$402,500
Luzerne
$271,050
Lycoming
$271,050
Mckean
$271,050
Mercer
$271,050
Mifflin
$271,050
Monroe
$271,050
Montgomery
$420,000
Montour
$271,050
Northampton
$402,500
Northumberland
$271,050
Perry
$271,050
Philadelphia
$420,000
Pike
$729,750
Potter
$271,050
Schuylkill
$271,050
Snyder
$271,050
Somerset
$271,050
Sullivan
$271,050
Susquehanna
$271,050
Tioga
$271,050
Union
$271,050
Venango
$271,050
Warren
$271,050
Washington
$327,500
Wayne
$271,050
Westmoreland
$327,500
Wyoming
$271,050
York
$271,050