$200,160.00 was the limit for a single family FHA maximum loan. That limit has been raised to $316,350. Multi family loan limits have been raised as well, as the spreadsheet indicates. Is this a magic fox for all of Rhode Island’s real estate problems? Of course not, but it is a start. It is one piece of the very confusing puzzle which makes up our real estate market. Quite frankly, anything at this point which can help get inventory moved is a positive thing. So by raising these limits, people who utilize FHA loans now have more selection to choose from. Below are the complete adjustments for these loans.

It is important to understand what exactly an FHA mortgage is. Simply put, it is a mortgage for a house, mobile home or a property improvement that is written by a private lender and insured by the Federal Housing Administration. The FHA provides this loan guarantee program in lieu of mortgage insurance so qualified buyers can get into these loans with minimal down payment, and the bank doesn’t take any risk lending the money. FHA guidelines are not as strict as Fannie Mae. The most utilized program involves a minimum of just 3% down payment. This payment can also be in the form of a gift from a relative or even a non-profit organization.

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