FHA Lending Limits in Georgia

FHA Basics

FHA loan programs are managed by the Federal Housing Authority, which has been part of the United States Housing and Urban Development, HUD, agency since 1965. These loans have a minimum down payment requirement of 3.5 percent, relatively low closing costs and easier credit qualifying than typical conventional loans. Conventional loans require a 20 percent down payment, which is a significant challenge for first-time home buyers and others with inadequate savings.

The FHA does not lend funds directly. Instead, it approves regular mortgage lenders to offer this type of loan to borrowers. The FHA sets lending limits for every county in every state in the U.S. This is one of the protective measures used to offset the increased risk of FHA loans to the lender. These maximum loan limits are based on the typical costs of properties in each county. Loan limits are established for one- to four-unit residential properties. These limits are adjusted periodically for changes in property values.

As noted, the large majority of single unit properties in Georgia and the rest of the U.S. have a maximum loan amount of $271,050 in May 2011, according to FHA.com. However, Georgia does have several counties with higher loan limits. Cherokee, Clayton, Pickens, Rockdale, Newton, Paulding, Meriwether, Henry and Lamar are among several Georgia communities with loan limits of $346,250. However, the Greene County loan limit of $662,500 is easily the highest limit throughout the state. Prospective home buyers can search the HUD website to find state loan limits by state and county.

The common loan maximum for two- to four-unit properties are $347,000, $419,425 and $521,250, respectively, according to FHA.com. These amounts are consistent throughout most of the typically priced housing markets. In the several counties that are in the higher priced areas, loan limits are $443,250, $535,800 and $665,850, respectively. For loans in Greene, Georgia, two- to four-unit borrowing limits are $848,100, $1,025,200 and $1,274,050, respectively.