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