On Dec. 9, 2015, the Federal Housing Administration (FHA) released its 2016 Loan Limits. FHA's calculation for maximum loan limits in high cost metropolitan areas of the country will remain at the 2015 level of $625,500. The standard loan limit for lower cost metropolitan areas will remain unchanged at $271,050.
Loan limits increased in 188 counties with no counties facing a loan limit decrease. Areas concentrated in Colorado, California, Seattle and North Dakota saw some of the largest increases. Any community that wishes to contest its loan limit must submit an appeal to the Santa Ana Homeownership Center no later than Jan. 8, 2016.
An explanation of FHA’s loan limit calculations, FHA loan limit “look up” links and appeal information are provided in FHA’s Mortgagee Letter 2015-30.
In addition, FHA released 2016 loan limits for FHA-insured traditional Home Equity Conversion Mortgage (HECM), HECM for purchase and HECM-to-HECM refinances. The maximum FHA-insured HECM claim amount limitations remain unchanged at $625,500 for all areas. Details are provided in FHA Mortgagee Letter 2015-29.