Loan limits are the maximum loan size for a mortgage loan. These vary by product and even region. Some updates below for the upcoming year.
The U.S. Federal Housing Administration (otherwise known as FHA) will pull back on loan their limits for 2014. As noted above, limits could vary by region. Single family limits will decrease to $625,500, from $729,750 in ceiling areas. This limit will apply to FHA case numbers issued on or after January 1st 2014 to December 31st 2014.
Fannie Mae and Freddie Mac announced there will be no changes to confirming loan limits for 2014. Conforming limit will remain at $417,000. Current limit has been in place since 2006.
Its important to know the above loan limits per product. If a loan falls outside of the mentioned loan limits, clients will have to meet varying criteria, which could include higher interest rates, higher down payments or even reserve requirements (money in the bank post closing).