FHA

  FHA announced today in ML 2024-21 that the low-cost and high-cost county limits have increased effective with case numbers assigned on or after January 1, 2025. Loan limits are county specific.  The low-cost areas mortgage limits have increased to:

• One-unit: $524,225
• Two-unit: $671,200
• Three-unit: $811,275
• Four-unit: $1,008,300

High-cost areas are also county specific and the highest limits, excluding Hawaii and Alaska, are:

• One-unit: $1,209,750
• Two-unit: $1,548,975
• Three-unit: $1,872,225
• Four-unit: $2,326,875

Some counties may have limits that fall between the low-cost and high-cost areas.  Hawaii and Alaska have higher high-cost limits.  At this time HUD has not issued an announcement if they will allow existing cases to be cancelled and appraisals to be reused due to the new loan limits.  As such, unless guidance is provided by HUD, it is not allowed. Minimum loan amounts for high balance products will be determined by case assignment date as well.  For cases assigned on or after January 1, 2025, the minimum loan amount for high balance products for a one unit property will be $806,501 and for cases assigned prior to January 1, 2025 will continue to be $766,551 (2-4 units will have increased minimum loan amount requirements as well).    

VA

  With the The Blue Water Navy Vietnam Veterans Act of 2019, VA removed the conforming loan limit cap on guarantees for Veterans with full entitlement.  For Veterans who have previously used entitlement and the entitlement has not been restored, the maximum amount of guaranty entitlement available to the Veteran (for a loan above $144,000) is 25 percent of the conforming loan limit reduced by the amount of entitlement previously used (not restored) by the Veteran.  The new guaranty requirements apply for loans closed on or after January 1, 2025. As a reminder, Veterans are able to use their VA Home Loan Guaranty benefit regardless of loan amount, but in order to purchase homes with loan amounts above the conforming loan limits, Veterans with partial entitlement may be required to make a down payment on amounts in excess of the conforming loan limit. Regardless of full or partial entitlement, the VA guaranty plus any required down payment must total 25% of the loan amount.    

USDA

  For all loans locked on or after January 1, 2025, the max loan amount will be the 2025 conforming high balance limit.