FHA Lending Limits Massachusetts - 2019

Planning on buying a home in Massachusetts? Take a look at a FHA Mortgage

Young family
What exactly is the FHA?

The Federal Housing Administration  (FHA) was introduced as a result of the Great Depression to support the housing market. The FHA continues to assist homeowners that do not satisfy traditional financing needs, such as having a credit history or evidence of income.

Are FHA interest rates lower than conventional interest rates?
Each FHA approved lender uses different metrics to determine the daily FHA interest rate. Some lenders actually prefer FHA home loans over conventional mortgages because the FHA loan is backed by the federal government. Rate adjustments occur with both FHA and conventional loans. FHA loans usually have fewer (less severe) adjustments compared to conventional loans with lower credit scores.

Is there an income limitation with FHA residential loans?

Do I have to be a first-time home buyer?

No, however many first time home buyers use the FHA program due to the reduced downpayment (3 1/2%) and seller paid closing costs.

Do I qualify for an FHA home loan?
If you have a history of paying your monthly bills on time and you do not have an FHA mortgage loan, there’s a good chance you will qualify for an FHA loan. Only an authorized FHA loan provider can evaluate whether or not you qualify for an FHA loan.

Do I need a good deal of money to purchase a house with an FHA loan?
No. The FHA down payment requirement is only 3.5%. For example, purchase price = $200,000 X 3.5% = $7,000

Can my downpayment come from gift money?
Yes! You can pay 100% of the down payment with grants from family, relatives, or approved organizations .

Is the seller permitted to pay my settlement costs?

Yes! The FHA allows the seller to pay as much as 6% of the purchase price toward the closing charges.

Does the FHA originate the loan?
No. The FHA insures the mortgage. The Federal Housing Administration charges insurance on the loan. If the homeowner defaults on a loan the FHA uses the money from these insurance premiums to compensate the lender. This is how the FHA encourages banks to provide mortgages to otherwise higher-risk borrowers.

Is applying for an FHA mortgage loan hard?
For the most part, it’s certainly not as difficult as getting the traditional conventional mortgage.

What types of home mortgage loans are available through the Federal Housing Administration?
You can get a Fixed Rate Loans, Variable Interest rate Loans, and Hybrid Mortgages

I would like to refinance. Can the FHA help?
Yes! The FHA provides a streamline refinance program for homeowners who already have a FHA mortgage loan and need to refinance to lower monthly payment. In {some cases home owners can do this without up front costs.  Homeowners can also get a cash-out loan refinance whether or not the mortgage you may be refinancing is an FHA loan. With a cash out refinance, homeowners can get as much as 85% of the value of the house.

Is there a sales price limit?
No, but there is a maximum loan amount based on the Massachusetts county - see below:

2019 FHA County Loan Limits for Massachusetts

One-Family is a single family home or condominium
Two-Family is two separate living units (duplex)
Three-Family three separate living units (triplex)
Four-Family  four separate living units (fourplex)

One-Family  Two-Family  Three-Family  Four-Family 
BARNSTABLE  $458,850 $587,400 $710,050 $882,400
BERKSHIRE  $314,827 $403,125 $487,250 $605,525
BRISTOL  $454,250 $581,500 $702,900 $873,550
DUKES  $726,525 $930,300 $1,124,475 $1,397,400
ESSEX  $688,850 $881,850 $1,065,950 $1,324,750
FRANKLIN  $314,827 $403,125 $487,250 $605,525
HAMPDEN  $318,550 $407,800 $492,950 $612,600
HAMPSHIRE  $318,550 $407,800 $492,950 $612,600
MIDDLESEX  $688,850 $881,850 $1,065,950 $1,324,750
NANTUCKET  $726,525 $930,300 $1,124,475 $1,397,400
NORFOLK  $688,850 $881,850 $1,065,950 $1,324,750
PLYMOUTH  $688,850 $881,850 $1,065,950 $1,324,750
SUFFOLK  $688,850 $881,850 $1,065,950 $1,324,750
WORCESTER  $327,750 $419,550 $507,150 $630,300