fha loans limit

fha loans limit

Are you looking to buy a home but worried about the loan limit? FHA loans can be a great option for you. In this article, we will explore everything you need to know about FHA loan limits and how they can affect your home buying process.

fha loans limit

When it comes to FHA loans, there is a limit on how much you can borrow. The loan limit varies depending on the county you are in, as well as the type of property you are looking to purchase. It is important to understand this limit before you start your home search, as it can impact the properties you can consider.

Understanding FHA Loan Limits

FHA loan limits are determined by the Federal Housing Administration (FHA). They set the maximum loan amount that can be insured by the FHA in order to protect lenders from losses. These limits are based on the median home prices in each county and can change annually. It is essential to stay updated on the current limits to make informed decisions.

Why FHA Loan Limits Matter

FHA loan limits matter because they determine the maximum loan amount you can borrow. If you are looking to purchase a property with a price higher than the FHA loan limit, you may need to consider other loan options. Understanding the limits can help you set realistic expectations when searching for homes within your budget.

How FHA Loan Limits are Calculated

FHA loan limits are calculated based on a percentage of the conforming loan limits set by the Federal Housing Finance Agency (FHFA). The FHFA sets the conforming loan limits annually based on changes in the average home price. The FHA then uses a formula to determine their loan limits, typically allowing borrowers to borrow up to 65-80% of the conforming loan limit.

Impact of FHA Loan Limits on Homebuyers

The FHA loan limits directly impact homebuyers, especially those with lower incomes. FHA loans are popular among first-time homebuyers and those with less-than-perfect credit. By providing access to affordable financing options, FHA loan limits enable more people to achieve homeownership.

FHA Loan Limit Table

CountySingle Family LimitTwo Family LimitThree Family LimitFour Family Limit

FAQs about FHA Loans Limit

1. What is the current FHA loan limit?

The current FHA loan limit for your county can be found on the official FHA website or by contacting a FHA-approved lender.

2. Can I exceed the FHA loan limit?

Yes, you can exceed the FHA loan limit, but you will need to apply for a different type of loan, such as a jumbo loan.

3. Do FHA loan limits vary by state?

Yes, FHA loan limits can vary by state and even within different counties in the same state.

4. Can I get an FHA loan for a multi-unit property?

Yes, FHA loans can be used to purchase multi-unit properties, but the loan limit will be higher based on the number of units.

5. Can FHA loan limits change?

Yes, FHA loan limits can change annually. It is important to stay updated on any changes that may affect your home buying plans.

6. What should I do if the property I want exceeds the FHA loan limit?

If the property you want exceeds the FHA loan limit, you might consider other loan options, such as a conventional loan or a larger down payment to reduce the loan amount.


Understanding FHA loan limits is crucial when planning to purchase a home with an FHA loan. Knowing the maximum loan amount you can borrow will help you set realistic expectations and find properties within your budget. Stay updated on the current loan limits to ensure a smooth home buying process. If you have any questions or need further guidance, reach out to a trusted FHA-approved lender who can assist you in navigating through the loan process and finding the best options for your situation. Don’t let loan limits deter you from becoming a homeowner – explore all available avenues to make your dream home a reality.

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