What determines the FHA loan limit in Ohio?

The FHA loan limit in Ohio is primarily determined by the county in which the property is located. The Federal Housing Administration (FHA) sets different loan limits based on the median home prices in specific areas, which reflects local housing market conditions. Each county has a maximum limit based on its housing prices, which means that borrowers looking for FHA loans in different counties may be subject to different applicable loan limits.

This approach allows the FHA to accommodate regional variations in housing costs, ensuring that borrowers can access financing that aligns with the market conditions of their specific location. For example, counties with higher median home prices will have higher FHA loan limits, making it easier for buyers in those areas to secure affordable financing.

Other options, such as the borrower’s credit score and the lender’s policies, do not influence the FHA loan limit. Credit score affects the terms and eligibility for a mortgage but not the maximum amount available through FHA. Similarly, while the type of property can impact loan eligibility, it is the county that ultimately dictates the limit set by the FHA.