The Fredericksburg Area Association of REALTORS® (FAAR) submitted a request to the Federal Housing Administration (FHA) to increase the FHA loan limit for King George County to bring parity across the regional housing market. The letter was supported by both King George County government and Congressman Rob Wittman.
The 2020 FHA loan limit for King George County is $350,750 for single family homes and the County is categorized as a non-metro MSA. Three of the County’s neighboring jurisdictions, the counties of Stafford and Spotsylvania, and the City of Fredericksburg, are located in the DC Metro MSA and have a loan limit of $765,600 for single family homes. That disparity creates a hardship for those looking to buy a home in the County and disadvantages King George as potential buyers cannot take advantage of generous FHA loans as they would be able to do in the other jurisdictions.
While King George may be rural in geography, its economy is not. Fueled by the military installation Naval Surface Warfare Center Dahlgren, the King George real estate market looks more like northern Virginia than a small, rural county. FAAR requested the FHA increase the loan limit for King George County to $765,600 to bring parity across the central Virginia housing market.