Last week the Federal Housing Administration (FHA) increased the loan limits for FHA loan products. It’s important to understand that this only applies to FHA loans and does not apply to conforming loan limits although the methodology for increasing FHA loan limits is the same. In either case the maximum loan limit is 125% of the area’s median home price.
To find out what the new FHA loan limits are in your area FHA has provided the following website:
http://www.fhaoutreach.com/
For the Portland-Metro area the new maximum FHA loan for a single family residence is now $418,750 which is up about $100,000 from the previous limits.
Here is a link to the announcement on HUD’s website:
http://portal.hud.gov/portal/page?_pageid=33,717234&_dad=portal&_schema=PORTAL