The Federal Housing Administration (FHA), the largest insurer of mortgages in the world, is changing the loan limit for Metro Atlanta real estate. The FHA Loan Limit will be increased from $498,257 for 2024 to $524,225 on any contract accepted and assigned an FHA case number in 2025. This is good news for Atlanta homebuyers, as it’s offering adjusted loan limits in correlation with higher home prices across the state.
Per usual, the FHA determines “floor” and “ceiling” values for these limits. For next year, the floor is 65% of the conforming loan limit, which equals $806,500 and puts the floor limit for a one-unit property at $524,225. While this is representative of many counties in Georgia, some metro Atlanta counties have a loan limit of $688,850.
Representing the upper limit for FHA loans, homebuyers will find the ceiling limit to be $1,209,750 in most high-cost areas.
How are the FHA loan limits determined?
FHA loan limits are calculated using median home prices within each Georgia county. Mandated to set the loan limit at 115% of the median home sale price, FHA finds the national floor and ceiling values, then sets those as upper and lower limits.
What about counties with a median home price higher than 115% of the floor? The FHA loan limit in those counties is adjusted accordingly to reflect higher housing costs and the need for loan accessibility.
What should homebuyers know about the loan limit increase?
Not only does the increase in FHA loan limits give home shoppers more purchasing power, but it also invites them to consider homes in a vast price range. FHA loans are notoriously friendly for first-time buyers with low down payment requirements and credit score flexibility. Additionally, the higher limit opens the possibility of more for prospective buyers, whether it’s an additional bedroom or a better neighborhood.
Georgia homebuyers also enjoy 15- to 30-year fixed rates with FHA loans, which is extremely competitive in comparison to other lenders. Payment assistance programs such as Georgia Dream Homeownership Program and Homestretch Payment Assistance further support you with up to 100% financing.
To look up the FHA loan limits for your area, visit this website.
