Below are the 2021 loan limits for single family homes for Washington County, Rhode Island.
A conventional mortgage is a loan that originates from a private lender and is not backed by the government. Loan qualification can be more challenging, but the loan limits are typically higher than FHA loan limits. As a result, a conventional loan provides more purchasing power.
FHA mortgage loans are typically easier to qualify for than a conventional loan as they are insured by the U.S. government. FHA loan limits are typically lower than conventional loans and must meet the official HUD minimum property standards. A great option for those with a higher risk profile, but purchasing power is reduced compared to a conventional loan.
The Federal Housing Administration (FHA) establishes a maximum loan amount, or loan limit, that it will insure. This is known as the FHA lending limit. These loan limits are calculated and updated annually.