FHA releases 2006 mortgage limits

The new FHA mortgage limits are out today in Mortgagee Letter 2005-49, as follows:

"Floor" prices for areas with relatively low-cost housing:

One-Unit - $200,160
Two-Unit - $256,248
Three-Unit - $309,744
Four-Unit - $384,936

"Ceiling" prices for "high-cost areas":

One-Unit - $362,790
Two-Unit - $464,449
Three-Unit - $561,411
Four-Unit - $697,696

These are significantly higher than last year's figures, which set the single-unit "floor" at $172,632 and the single-unit "ceiling" at $312,895. This may be a response to the criticism that FHA mortgages have been becoming less practical for homebuyers in expensive areas where many home prices have risen above the "high-cost" limits.