2014 FHA Loan Limits are going to drop tremendously in the Baltimore real estate area.
The Baltimore area includes Baltimore County, Baltimore City, and Harford County. There are other areas included per the HUD.gov site.
In 2013, FHA loan limits for Baltimore County homes has been $560,000.
In 2014, Baltimore County FHA loan limits are going to drop to $494,500.
This is for any loans getting their FHA loan numbers beginning January 1, 2014.
Anyone wanting an FHA loan in Baltimore over $494,500 needs to have their home under contract and FHA loan number assigned to them PRIOR to January 1, 2014.
This does concern me as to property values, because FHA loans are very prevalent in the Baltimore real estate market. This creates a 12% drop in Baltimore FHA borrowers’ purchasing power.
Keep in mind, this would include FHA203K renovation loans as well, so a home that needs work, but is larger, would still have this limitation.
If you are considering buying a home in Baltimore using an FHA loan, and are on the borderline of this spectrum, please keep this in mind. If you need more details on the 2014 Baltimore FHA Loan Limits, please don’t hesitate to contact me!