| FHA Loan Programs |
What are the FHA maximum
mortgage limits?
mortgage limits?
The property’s sales price, subject to certain required
adjustments as described in A-C below, or the appraised
value, if less, is multiplied by a loan-to-value ratio. The
resulting amount is the maximum mortgage that FHA will
insure. The borrower must make a cash investment at least
equal to the difference between the sales price and the
resulting maximum mortgage amount.
Except for certain property and transaction types as described
in 1-8 below, the lower of the adjusted sales price or the
appraised value is multiplied by the factor shown in the chart
below. The resulting amount is the maximum loan that FHA
will insure provided that the mortgagor has made a cash
investment of at least three percent of the contract sales price.
Borrower-paid closing costs may be used to meet the three
percent minimum cash investment. If the borrower pays no
closing costs at settlement, the loan amount must be reduced
sufficiently so that the three percent minimum cash investment
is met.
adjustments as described in A-C below, or the appraised
value, if less, is multiplied by a loan-to-value ratio. The
resulting amount is the maximum mortgage that FHA will
insure. The borrower must make a cash investment at least
equal to the difference between the sales price and the
resulting maximum mortgage amount.
Except for certain property and transaction types as described
in 1-8 below, the lower of the adjusted sales price or the
appraised value is multiplied by the factor shown in the chart
below. The resulting amount is the maximum loan that FHA
will insure provided that the mortgagor has made a cash
investment of at least three percent of the contract sales price.
Borrower-paid closing costs may be used to meet the three
percent minimum cash investment. If the borrower pays no
closing costs at settlement, the loan amount must be reduced
sufficiently so that the three percent minimum cash investment
is met.
