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How Do Banks and Credit Unions Make Money?

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Banks and credit unions share some broad similarities: They help their customers borrow money, build savings and invest for the future. Both credit unions and banks make money by charging interest on loans and charging fees for banking services. But their business models are very different in many ways, mainly in regards to what they do with their profits.

Banks are for-profit enterprises that serve all and any customers who come to them, and distribute profits to shareholders. Credit unions are not-for-profit institutions that only serve people who become members, often by requiring them to meet certain membership criteria. Credit unions reward their members with bonus dividends or lower-cost services, rather than redistributing earnings to investors.

How banks and credit unions make money

Banks and credit unions both make money by lending out a portion of their deposits, charging interest on those loans and collecting fees and charges for various financial services, such as investing and wealth management.

Interest on loans

The most significant source of profits for banks and credit unions is charging interest on loans to consumers. Common types of loans offered by banks and credit unions include mortgages, home equity lines of credit (HELOCs), auto loans and personal loans, said Ken Tumin, founder of DepositAccounts.com, a LendingTree company.

Banks pay interest on deposits — checking accounts, savings accounts and certificates of deposit — but the interest they earn from making loans is typically higher than what they pay for deposits. In the banking business, the difference between these two types of interest is known as the “spread.”

If a bank pays out 1% interest on $200,000 worth of CDs, and receives 4.5% interest on a $200,000 mortgage, the difference — the spread — is how the bank makes money. Banks have to comply with rules on how many loans they can make relative to their asset bases.

Fees

Another way that banks and credit unions make money is by charging consumers fees for a variety of services, Tumin said. Commonly charged fees include:

  • Overdraft fees: Overdraft fees comprise 60% of the fees charged by banks, and they tend to fall disproportionately on lower-income customers. Banks and credit unions charge these fees when you don’t have enough money to cover your payment or withdrawal. Fees can run as high as $36 per overdraft transaction.
  • Interchange fees: Banks and credit unions charge merchants fees when you use your credit or debit card, which are known as interchange fees. If a consumer makes a purchase, money is withdrawn from their account — and the merchant pays a fee to both the bank and the credit card company for the transaction.
  • Checking account fees: Monthly fees may be associated with a checking account, or fees may be levied if a consumer doesn’t maintain a minimum balance in the account.
  • ATM fees: If you use another financial institution’s ATM, you typically pay a fee to do so, which goes into that bank or credit union’s pocket. In addition, your own bank may charge you a fee.
  • In-branch service fees: If you need a cashier’s check, money order, notary or lock box storage, banks charge per-use or annual fees for these services.
  • Document fees: Banks may charge a fee to pull historical bank records pre-dating a certain time period or to provide print copies of cashed checks. Banks may also charge fees for check printing or paper statements.
  • Loan origination fees: Banks charge fees to “originate” loans, including home loans and personal loans. Loan origination fees may be a one-time flat fee or a percentage of a loan. They may sound low (1%, for instance) but can actually be substantial when considering the total size of the loan.
  • Late fees: Banks charge late fees when borrowers pay credit cards, mortgage loans, personal loans and other forms of debt past the bill’s due date (or past a grace period, which is a few days past the due date). When a checking account is overdrawn, there may be additional late fees if it is not brought back to or above $0 swiftly.
  • Early withdrawal fees: Those who open CDs at banks will pay early withdrawal fees if they withdraw funds before their certificate’s term expires. These fees can cut into earnings from a CD.

Financial services

Many banks offer financial advisory and wealth management services. Institutions charge either a percentage of assets under management or per-transaction brokerage fees.

Additionally, some banks offer private banking services to high-net-worth consumers, charging an annual management fee as a percentage of the assets under management. Banks also offer access to investment products for customers in lower wealth brackets.

Credit unions cannot offer financial advisory or wealth management services directly, so they provide them by affiliating with partner registered investment advisors or registered broker-dealers. Credit unions offer these services as a benefit to consumers who want investing advice, and they may make money indirectly through referral fees or other partnerships arranged with an investment advising company.

What do banks and credit unions do with their profits?

Credit unions do not have to pay taxes since they are not-for-profit organizations, which means they avoid one major expense that banks need to pay. Additionally, because credit unions are owned by their members rather than by shareholders, they aren’t focused on generating profits for shareholders like banks are. Often, credit unions return profits to their members as dividends, or they may offer reduced fees or better interest rates on loans or deposit accounts, which can, in turn, attract new members.

Banks, on the other hand, are owned by investors and operate as for-profit institutions. They use their profits to provide returns to shareholders (especially if they’re publicly traded, as most larger banks are), and to pay state and federal taxes, which they must pay as for-profit organizations.

How online banking impacts banks and credit unions

Brick-and-mortar banks and credit unions have been facing more and more competition from online banks. Online banks tend to charge lower account fees than credit unions and pay out higher interest rates on deposits, said Tumin.

While online banks don’t have physical branch locations, they nonetheless offer a compelling proposition to consumers. In response, brick-and-mortar banks are beating them by joining them, offering online banking services of their own to address competition from apps and other tools, which threaten to reduce payment-related revenue by as much as 15% by 2025, according to a report published by Accenture, a professional services firm.

Going forward, banks’ business models will have to change to accommodate the anticipated reduction in fee income. But while these tools may not add revenue for banks, they could potentially lower branch operation costs, which are substantial. By putting more power in consumer hands, a big bank could reduce its branch count, branch hours or individual branch teller staff hours.

“For banks, these tools may be more about cutting back on expenses than adding revenue,” Tumin said.

For credit unions, providing these tools offers the conveniences that banks, which typically have larger branch networks, present. Since credit unions aren’t driven to provide returns to shareholders on Wall Street and are instead driven to manage so that their members receive benefits and favorable rates, credit unions can choose which services are for benefit versus for profit.

Are banks or credit unions better for your money?

Now that you know how banks and credit unions make money, you may be wondering which option is best for your money. As with most financial questions, the answer largely depends on what’s most important to you.

Online banks offer the most compelling savings account rates, with the best online savings accounts offering an APY of 1.70% or higher. Pair this with their low-fee checking accounts, and online banks are a compelling option for many consumers, although a lack of branches may deter some people.

Brick-and-mortar bank networks may be more convenient, offering more branches and more sophisticated online banking and investing options. These benefits are positives for some busy consumers, but the convenience comes at a cost — especially when it comes to overdraft and other fees.

“Credit unions may be more consumer-friendly,” Tumin said, citing their low account fees and balance minimums. Because credit unions are member-owned and locally driven, they may give back to their communities and their members. However, they are not open to everyone, as a consumer generally can’t join a credit union for aerospace or military members if they’ve never worked in those fields, for example.

The bottom line

No two consumers need the same things from their bank or credit union, so it pays to research how accounts and fees are structured and which additional services are available. While credit unions and banks make money in similar ways, including through interest on loans and fees that customers pay, they don’t handle profits in the same way.

Where that money is reinvested — in discounts to consumers, or in profits for shareholders — is a key differentiator between credit unions and banks. If you’re going to entrust an institution with your money, it pays to know how that institution ultimately makes money.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Mortgage

2019 FHA Loan Limits in Oklahoma

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Oklahoma is a land of sweeping plains, cattle ranches and Native American history. The state is home to wheat and other types of farms, as well as a vibrant natural resources sector featuring mining, petroleum and gas extraction. While its location in America’s “Tornado Alley” means residents see the occasional surprise tornado, what they fortunately don’t see are spiking home prices.

Oklahoma is an affordable place to live. Median 2018 single-family home prices in major cities such as Oklahoma City and Tulsa came in at $161,000 and $164,700, respectively, according to data from the National Association of Realtors. Only two counties in the state — Canadian County and McClain County — have median home prices above $174,000. This still falls far below the national median of $261,600.

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Nevertheless, you may find you need extra financing help when you want to buy a house. One option is to apply for a mortgage insured by the Federal Housing Authority (FHA). FHA loans have low down payment requirements and may be easier to qualify for than conventional mortgages.

The FHA sets restrictions on the size of the mortgages it will back. Those limits change every year to keep up with changing home prices. The standard 2019 limit for areas considered “low cost” is $314,827 across the country. Because Oklahoma’s home prices are so reasonable, the FHA loan limit to purchase a single-family home is $314,827 for every county in Oklahoma.

Oklahoma FHA Loan Limits by County

County NameOne-FamilyTwo-FamilyThree-FamilyFour-FamilyMedian Sale Price
ADAIR$314,827 $403,125 $487,250 $605,525 $52,000
ALFALFA$314,827 $403,125 $487,250 $605,525 $72,000
ATOKA$314,827 $403,125 $487,250 $605,525 $51,000
BEAVER$314,827 $403,125 $487,250 $605,525 $79,000
BECKHAM$314,827 $403,125 $487,250 $605,525 $96,000
BLAINE$314,827 $403,125 $487,250 $605,525 $48,000
BRYAN$314,827 $403,125 $487,250 $605,525 $93,000
CADDO$314,827 $403,125 $487,250 $605,525 $84,000
CANADIAN$314,827 $403,125 $487,250 $605,525 $161,000
CARTER$314,827 $403,125 $487,250 $605,525 $104,000
CHEROKEE$314,827 $403,125 $487,250 $605,525 $75,000
CHOCTAW$314,827 $403,125 $487,250 $605,525 $47,000
CIMARRON$314,827 $403,125 $487,250 $605,525 $28,000
CLEVELAND$314,827 $403,125 $487,250 $605,525 $161,000
COAL$314,827 $403,125 $487,250 $605,525 $40,000
COMANCHE$314,827 $403,125 $487,250 $605,525 $111,000
COTTON$314,827 $403,125 $487,250 $605,525 $111,000
CRAIG$314,827 $403,125 $487,250 $605,525 $97,000
CREEK$314,827 $403,125 $487,250 $605,525 $157,000
CUSTER$314,827 $403,125 $487,250 $605,525 $111,000
DELAWARE$314,827 $403,125 $487,250 $605,525 $95,000
DEWEY$314,827 $403,125 $487,250 $605,525 $91,000
ELLIS$314,827 $403,125 $487,250 $605,525 $68,000
GARFIELD$314,827 $403,125 $487,250 $605,525 $104,000
GARVIN$314,827 $403,125 $487,250 $605,525 $55,000
GRADY$314,827 $403,125 $487,250 $605,525 $161,000
GRANT$314,827 $403,125 $487,250 $605,525 $50,000
GREER$314,827 $403,125 $487,250 $605,525 $78,000
HARMON$314,827 $403,125 $487,250 $605,525 $45,000
HARPER$314,827 $403,125 $487,250 $605,525 $78,000
HASKELL$314,827 $403,125 $487,250 $605,525 $89,000
HUGHES$314,827 $403,125 $487,250 $605,525 $73,000
JACKSON$314,827 $403,125 $487,250 $605,525 $103,000
JEFFERSON$314,827 $403,125 $487,250 $605,525 $30,000
JOHNSTON$314,827 $403,125 $487,250 $605,525 $46,000
KAY$314,827 $403,125 $487,250 $605,525 $70,000
KINGFISHER$314,827 $403,125 $487,250 $605,525 $137,000
KIOWA$314,827 $403,125 $487,250 $605,525 $35,000
LATIMER$314,827 $403,125 $487,250 $605,525 $34,000
LE FLORE$314,827 $403,125 $487,250 $605,525 $120,000
LINCOLN$314,827 $403,125 $487,250 $605,525 $161,000
LOGAN$314,827 $403,125 $487,250 $605,525 $161,000
LOVE$314,827 $403,125 $487,250 $605,525 $58,000
MAJOR$314,827 $403,125 $487,250 $605,525 $69,000
MARSHALL$314,827 $403,125 $487,250 $605,525 $67,000
MAYES$314,827 $403,125 $487,250 $605,525 $83,000
MCCLAIN$314,827 $403,125 $487,250 $605,525 $161,000
MCCURTAIN$314,827 $403,125 $487,250 $605,525 $71,000
MCINTOSH$314,827 $403,125 $487,250 $605,525 $46,000
MURRAY$314,827 $403,125 $487,250 $605,525 $56,000
MUSKOGEE$314,827 $403,125 $487,250 $605,525 $84,000
NOBLE$314,827 $403,125 $487,250 $605,525 $117,000
NOWATA$314,827 $403,125 $487,250 $605,525 $62,000
OKFUSKEE$314,827 $403,125 $487,250 $605,525 $41,000
OKLAHOMA$314,827 $403,125 $487,250 $605,525 $161,000
OKMULGEE$314,827 $403,125 $487,250 $605,525 $157,000
OSAGE$314,827 $403,125 $487,250 $605,525 $157,000
OTTAWA$314,827 $403,125 $487,250 $605,525 $63,000
PAWNEE$314,827 $403,125 $487,250 $605,525 $157,000
PAYNE$314,827 $403,125 $487,250 $605,525 $140,000
PITTSBURG$314,827 $403,125 $487,250 $605,525 $70,000
PONTOTOC$314,827 $403,125 $487,250 $605,525 $96,000
POTTAWATOMIE$314,827 $403,125 $487,250 $605,525 $90,000
PUSHMATAHA$314,827 $403,125 $487,250 $605,525 $76,000
ROGER MILLS$314,827 $403,125 $487,250 $605,525 $63,000
ROGERS$314,827 $403,125 $487,250 $605,525 $157,000
SEMINOLE$314,827 $403,125 $487,250 $605,525 $55,000
SEQUOYAH$314,827 $403,125 $487,250 $605,525 $120,000
STEPHENS$314,827 $403,125 $487,250 $605,525 $75,000
TEXAS$314,827 $403,125 $487,250 $605,525 $95,000
TILLMAN$314,827 $403,125 $487,250 $605,525 $32,000
TULSA$314,827 $403,125 $487,250 $605,525 $157,000
WAGONER$314,827 $403,125 $487,250 $605,525 $157,000
WASHINGTON$314,827 $403,125 $487,250 $605,525 $110,000
WASHITA$314,827 $403,125 $487,250 $605,525 $46,000
WOODS$314,827 $403,125 $487,250 $605,525 $98,000
WOODWARD$314,827 $403,125 $487,250 $605,525 $99,000

How are FHA loan limits calculated?

The U.S. Department of Housing and Urban Development (HUD) sets FHA loan limits each year. HUD takes what is known as the “baseline conforming loan limit,” the maximum loan size,. Freddie Mac or Fannie Mae will purchase, and uses that as the figure from which FHA loan amounts are calculated. In 2019, the conforming loan limit is $484,350.

The lower end of FHA limits, called the “floor,” is 65% of this figure, or $314,827. That’s the limit for low-cost areas. The higher end or “ceiling” for more expensive markets is 150% of the conforming loan limit, or $726,525.

Here are the 2019 standard FHA limits for all property types:

  • One-unit: $314,827
  • Two-unit: $403,125
  • Three-unit: $487,250
  • Four-unit: $605,525

Here are the 2019 standard FHA limits for high-cost areas:

  • One-unit: $726,525
  • Two-unit: $930,300
  • Three-unit: $1,124,475
  • Four-unit: $1,397,400

Are you eligible for an FHA loan in Oklahoma?

More than 30% of mortgage loans originated in Oklahoma are FHA loans, according to a 2016 FHA annual report (the most recent report covering this data). To qualify for an FHA loan, you’ll need to meet minimum credit scoreand other requirements, some of which may be added as “overlays” by lenders offering the loans. For more information, visit MagnifyMoney’s complete guide to FHA loans.

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Mortgage

2019 FHA Loan Limits in Ohio

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Intro

The Buckeye State, with its central location and its famous Ohio River, has a relatively inexpensive housing market. Median single-family home prices in major Ohio cities fall below the U.S. median of $261,600. The most expensive city, by median single-family home price, is Columbus at $200,000, followed by Cincinnati at $169,400, Cleveland at $150,100, and Dayton at $145,000.

If you look at housing prices by county, the story is similar. Only one county in the state — Delaware County — has homes with median prices over $300,000. Many counties’ median home prices don’t even top $200,000.

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Still, you may feel you need help with financing a home purchase in Ohio. One attractive option is to apply for a mortgage that’s insured by the Federal Housing Authority (FHA). An FHA loan requires a lower down payment and credit score than conventional mortgages.

If you’re looking to buy a home using an FHA loan in Ohio, you’re in good company. Some 26.5% of all loans originated in the state during 2016 were FHA loans, the most recent year for which FHA has data. A 2018 report noted that 3.84% of FHA loans nationwide originated in Ohio.

Every year, the FHA sets new limits on the amount it will insure home mortgages for. The limits adjust to keep up with changing home prices. In 2019, the price limit is $314,827 for low-cost areas nationwide.

Because median home prices in Ohio are so reasonable, the FHA loan limit for a single-family home is that same $314,827 everywhere in the state except for the Columbus metro area, where it is $356,500.

Ohio FHA Loan Limits by County

County NameOne-FamilyTwo-FamilyThree-FamilyFour-FamilyMedian Sale Price
ADAMS$314,827 $403,125 $487,250 $605,525 $50,000
ALLEN$314,827 $403,125 $487,250 $605,525 $93,000
ASHLAND$314,827 $403,125 $487,250 $605,525 $110,000
ASHTABULA$314,827 $403,125 $487,250 $605,525 $76,000
ATHENS$314,827 $403,125 $487,250 $605,525 $113,000
AUGLAIZE$314,827 $403,125 $487,250 $605,525 $116,000
BELMONT$314,827 $403,125 $487,250 $605,525 $119,000
BROWN$314,827 $403,125 $487,250 $605,525 $229,000
BUTLER$314,827 $403,125 $487,250 $605,525 $229,000
CARROLL$314,827 $403,125 $487,250 $605,525 $119,000
CHAMPAIGN$314,827 $403,125 $487,250 $605,525 $120,000
CLARK$314,827 $403,125 $487,250 $605,525 $98,000
CLERMONT$314,827 $403,125 $487,250 $605,525 $229,000
CLINTON$314,827 $403,125 $487,250 $605,525 $112,000
COLUMBIANA$314,827 $403,125 $487,250 $605,525 $80,000
COSHOCTON$314,827 $403,125 $487,250 $605,525 $75,000
CRAWFORD$314,827 $403,125 $487,250 $605,525 $63,000
CUYAHOGA$314,827 $403,125 $487,250 $605,525 $234,000
DARKE$314,827 $403,125 $487,250 $605,525 $102,000
DEFIANCE$314,827 $403,125 $487,250 $605,525 $93,000
DELAWARE$356,500 $456,350 $551,650 $685,550 $310,000
ERIE$314,827 $403,125 $487,250 $605,525 $110,000
FAIRFIELD$356,500 $456,350 $551,650 $685,550 $310,000
FAYETTE$314,827 $403,125 $487,250 $605,525 $100,000
FRANKLIN$356,500 $456,350 $551,650 $685,550 $310,000
FULTON$314,827 $403,125 $487,250 $605,525 $160,000
GALLIA$314,827 $403,125 $487,250 $605,525 $111,000
GEAUGA$314,827 $403,125 $487,250 $605,525 $234,000
GREENE$314,827 $403,125 $487,250 $605,525 $168,000
GUERNSEY$314,827 $403,125 $487,250 $605,525 $76,000
HAMILTON$314,827 $403,125 $487,250 $605,525 $229,000
HANCOCK$314,827 $403,125 $487,250 $605,525 $135,000
HARDIN$314,827 $403,125 $487,250 $605,525 $79,000
HARRISON$314,827 $403,125 $487,250 $605,525 $65,000
HENRY$314,827 $403,125 $487,250 $605,525 $99,000
HIGHLAND$314,827 $403,125 $487,250 $605,525 $78,000
HOCKING$356,500 $456,350 $551,650 $685,550 $310,000
HOLMES$314,827 $403,125 $487,250 $605,525 $155,000
HURON$314,827 $403,125 $487,250 $605,525 $100,000
JACKSON$314,827 $403,125 $487,250 $605,525 $69,000
JEFFERSON$314,827 $403,125 $487,250 $605,525 $94,000
KNOX$314,827 $403,125 $487,250 $605,525 $130,000
LAKE$314,827 $403,125 $487,250 $605,525 $234,000
LAWRENCE$314,827 $403,125 $487,250 $605,525 $158,000
LICKING$356,500 $456,350 $551,650 $685,550 $310,000
LOGAN$314,827 $403,125 $487,250 $605,525 $94,000
LORAIN$314,827 $403,125 $487,250 $605,525 $234,000
LUCAS$314,827 $403,125 $487,250 $605,525 $160,000
MADISON$356,500 $456,350 $551,650 $685,550 $310,000
MAHONING$314,827 $403,125 $487,250 $605,525 $88,000
MARION$314,827 $403,125 $487,250 $605,525 $85,000
MEDINA$314,827 $403,125 $487,250 $605,525 $234,000
MEIGS$314,827 $403,125 $487,250 $605,525 $52,000
MERCER$314,827 $403,125 $487,250 $605,525 $125,000
MIAMI$314,827 $403,125 $487,250 $605,525 $168,000
MONROE$314,827 $403,125 $487,250 $605,525 $70,000
MONTGOMERY$314,827 $403,125 $487,250 $605,525 $168,000
MORGAN$314,827 $403,125 $487,250 $605,525 $50,000
MORROW$356,500 $456,350 $551,650 $685,550 $310,000
MUSKINGUM$314,827 $403,125 $487,250 $605,525 $98,000
NOBLE$314,827 $403,125 $487,250 $605,525 $79,000
OTTAWA$314,827 $403,125 $487,250 $605,525 $139,000
PAULDING$314,827 $403,125 $487,250 $605,525 $75,000
PERRY$356,500 $456,350 $551,650 $685,550 $310,000
PICKAWAY$356,500 $456,350 $551,650 $685,550 $310,000
PIKE$314,827 $403,125 $487,250 $605,525 $75,000
PORTAGE$314,827 $403,125 $487,250 $605,525 $150,000
PREBLE$314,827 $403,125 $487,250 $605,525 $99,000
PUTNAM$314,827 $403,125 $487,250 $605,525 $105,000
RICHLAND$314,827 $403,125 $487,250 $605,525 $95,000
ROSS$314,827 $403,125 $487,250 $605,525 $106,000
SANDUSKY$314,827 $403,125 $487,250 $605,525 $90,000
SCIOTO$314,827 $403,125 $487,250 $605,525 $65,000
SENECA$314,827 $403,125 $487,250 $605,525 $80,000
SHELBY$314,827 $403,125 $487,250 $605,525 $122,000
STARK$314,827 $403,125 $487,250 $605,525 $119,000
SUMMIT$314,827 $403,125 $487,250 $605,525 $150,000
TRUMBULL$314,827 $403,125 $487,250 $605,525 $88,000
TUSCARAWAS$314,827 $403,125 $487,250 $605,525 $110,000
UNION$356,500 $456,350 $551,650 $685,550 $310,000
VAN WERT$314,827 $403,125 $487,250 $605,525 $82,000
VINTON$314,827 $403,125 $487,250 $605,525 $47,000
WARREN$314,827 $403,125 $487,250 $605,525 $229,000
WASHINGTON$314,827 $403,125 $487,250 $605,525 $106,000
WAYNE$314,827 $403,125 $487,250 $605,525 $133,000
WILLIAMS$314,827 $403,125 $487,250 $605,525 $90,000
WOOD$314,827 $403,125 $487,250 $605,525 $160,000
WYANDOT$314,827 $403,125 $487,250 $605,525 $83,000

How are FHA loan limits calculated?

The U.S. Department of Housing and Urban Development (HUD) sets FHA loan limits based on the conforming loan limit — or how large of a mortgage Fannie Mae and Freddie Mac will purchase. In 2019, the conforming loan limit is $484,350.

The FHA “floor” is the largest mortgage the agency will issue in most of the country and is set at 65% of the conforming loan limit, which is $314,827 for 2019. The FHA “ceiling” applies to high-cost areas and is set at 150% of the conforming loan limit, or $726,525. Outside of a few exceptions, this is the highest mortgage the agency will insure for a single-family home. In other areas, loan limits fall somewhere between the FHA floor and ceiling.

Here are the 2019 standard FHA limits for all property types nationwide:

  • One-unit: $314,827
  • Two-unit: $403,125
  • Three-unit: $487,250
  • Four-unit: $605,525

Here are the 2019 standard FHA limits for high-cost areas nationwide:

  • One-unit: $726,525
  • Two-unit: $930,300
  • Three-unit: $1,124,475
  • Four-unit: 1,397,400

Are you eligible for an FHA loan in Ohio?

An FHA loan may be able to help you with your homebuying needs, but you will have to qualify. Your credit score, income level and debt-to-income ratio will all be taken into consideration by lenders. To learn more about qualifying for an FHA loan, as well as other information about the process, visit MagnifyMoney’s complete guide to FHA loans.

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