# What is FHA maximum loan calculation?

What is the maximum loan-to-value ratio for an FHA refinance loan? For no cash-out rate-and-term refinances, FHA loan rules say the maximum LTV is **97.5% for owner-occupied principal residences**.

## How do you calculate maximum loan on FHA streamline?

**Multiply the home’s value as reported on the appraisal by 97.75 percent of the home’s value**, if that is the maximum loan calculation that applies to you. For example, 97.75 percent of a $200,000 home is $195,500. Add to this loan amount the new UFMIP amount based on a 1.75 percent rate, which is $3,421.25.

## What is the highest loan amount for an FHA loan?

For reference, limits for a 1-unit home in 2021 ranged from $356,362 – $822,375 and vary by county. That range has been adjusted up to **$420,680 – $970,800**. So, the maximum loan amount for an FHA loan on a 1-unit home in a low-cost county is $420,680, while the upper limit in high-cost counties is $970,800.

## How is maximum loan amount calculated?

**Maximum monthly payment (PITI) is calculated by taking the lower of these two calculations:**

- Monthly Income X 28% = monthly PITI.
- Monthly Income X 36% – Other loan payments = monthly PITI.

## Does FHA max loan amount include MIP?

Most FHA mortgages require the payment of an upfront mortgage insurance premium (UFMIP). The statutory loan amounts and LTV limits discussed in this handbook **do not include the UFMIP**.

## Will FHA loan limits increase in 2022?

The Federal Housing Administration (FHA) just announced relief for those hoping to buy a home this year. **As of January 1, 2022, the loan limits for FHA-backed loans will rise 18%**—a record increase—to reflect the market and allow qualified buyers to continue to access affordable home financing.

## How is FHA LTV calculated?

How To Calculate LTV. Loan-to-value ratios are easy to calculate: just **divide the loan amount by the most current appraised value of the property**. For example, if a lender grants you a $180,000 loan on a home that’s appraised at $200,000, you’ll divide $180,000 over $200,000 to get your LTV of 90%.

## What is the maximum LTV for FHA refinance?

80%

Loan-to-value ratio (LTV).

The maximum LTV for an FHA cash-out refinance loan is **80%**. 3 That means the amount you owe on your existing mortgage cannot exceed 80% of the home’s current value.