FHA Loan Limits Adjusted January 2014 No Big Deal

FHA Loan Limits Hit Hillsborough County Hard

Hillsborough county real estateThis announcement came to me today and as it is very important to 90% of borrowers today, I am passing this information along.  If you have any questions, please feel free to contact me direct 603-781-4099.

New Hampshire Association Of Realtors Announces

December 17, 2013Reduction in FHA Loan LimitsThe Federal Housing Administration (FHA) announced recently that it will be reducing the loan amount it will insure on certain New Hampshire mortgages starting Jan. 1, 2014.FHA insures loans for buyers with down payments as low as 3.5 percent. The agency raised its limits during the financial crisis to help more home buyers, and the program played a significant role in New Hampshire’s housing recovery. At its peak, FHA loans accounted for one-third of all new mortgages in New Hampshire.The FHA said that implementing lower loan limits was needed as private capital is returning to the market, and the move will enable FHA to concentrate on those borrowers that are still underserved. Hillsborough County will see the most dramatic decrease, although Merrimack, Rockingham, Strafford, Belknap and Grafton counties will also see a reduction.There is no change in Carroll, Cheshire, Coos and Sullivan counties.


County 2013 FHA Limit 2014 FHA Limit Percent Change
Hillsborough $402,500 $295,550 -27 percent
Merrimack $302,500 $271,050 -10 percent
Rockingham $523,750 $470,350 -10 percent
Strafford $523,750 $470,350 -10 percent
Belknap $281,250 $271,050 -4 percent
Grafton $281,250 $271,050 -4 percent


In contrast to FHA’s rate changes, the Federal Housing Finance Authority, the regulator of Fannie Mae and Freddie Mac, has announced that the current limits on conforming loans will remain in effect until further notice.

Here’s My Take: FHA Loan Limits Hits Hillsborough Hard?

hillsborough county real estate

Looking at the sales data for the hardest hit, Hillsborough County, year to date over the last four years, the impact doesn’t initially seem significant.  Keep in mind that Median Sales Price is the transaction in the middle of all the data with half of the transactions having a sales price above the median and half below.  With home sales on the rise, New Hampshire’s economic recovery and the nation’s as well is directly related to home sales and new homes being built.  Will a 10% reduction in loan limits make that much of a difference?  I’m not so sure but the better news is more conventional loans are available with 5% down payments and no mortgage insurance.  Take a look at your => 7 Best Finance Options and get pre-approved today.

Where’s The Hillsborough County Inventory Problem?

Evidenced by the data, inventory looks good.  More listings are coming to the market that there are sales this year.  Last year new listings were coming to the market in fewer numbers and there was a bit of a crunch last spring.  Inventory recovered as sellers learned there my be a seller’s market but that was short lived and the market is on pace for sustained growth in 2014.

manchester real estate

Don’t Kick Yourself In 2015

Mortgage rates are on the incline and fortunately at a slow pace.  The issue is that rates will never again be as low as they were but we can still enjoy the lowest rates in our lifetime.  Look at the difference of how rates have reacted over the last 52 weeks vs the last 52 years.

marty patrizi real estate

First Time Home Buyers Have The Advantage

With rates as low as they are, homes are more affordable today than going forward.  First time buyers are reaping the benefits of mortgage rates.  They may not be buying their dream home but they are building equity fast with an entry level home that they can use as a stepping stone to the bigger or newer home in the future.   Stop lining your landlord’s pockets and search for your new home here => Search NH Homes For Sale

marty patrizi

Your Experienced Agent can help you succeed with your real estate goals.