FHA increases loan limits in 2018
FHA announced recently increases to their loan limits beginning in 2018. These are based on 115% of median prices subject to other conditions. San Diego county is considered high-costs area.
This is good news not only for standard FHA loans, but will include 203K renovation loans. This is much needed in San Diego area that will open up more neighborhoods that will fall under this new limit.
1 Home - $636,150 $649,750
2 Home - $814,500 $831,800
3 Home - $984,525 $1,005,450
Regarding renovation loans, using a hypothetical $60,000 construction loans the 203K loans will grow into additional zip codes in San Diego county. This will be about 10 more zip codes to a total of 58 zip codes that fall into within the new FHA loan limit.
In 2018 home buyers and realtors will be able to explore more neighborhoods. This will be a significant benefit at a time when inventory is limited.
Renovation loans will create more opportunities by seeking homes that are distressed, outdated or with deferred issues that will create that dream home to the home buyers personal preferences.