What Is the Max FHA Loan Amount for Your Area?
Understand FHA loan limits. Learn how these maximums are set, vary by location and property type, and how to find your area's amount.
FHA loans offer a government-backed mortgage option designed to broaden access to homeownership for many individuals. Unlike conventional loans, FHA loans adhere to specific maximum limits on the amount that can be borrowed. These limits are not uniform across the United States; they vary significantly based on geographical location and the type of property being financed. Understanding these varying limits is important for prospective homebuyers considering an FHA-insured mortgage.
Core Principles of FHA Loan Limits
FHA loan limits are established at a local level, typically by county or metropolitan statistical area (MSA). These limits represent the maximum loan amount the Federal Housing Administration (FHA) will insure for a mortgage in a given area. These limits cap the FHA’s insurance coverage, not the specific amount a borrower qualifies for, as qualifications depend on individual financial circumstances.
A national “floor” and “ceiling” are set annually, representing the minimum and maximum loan limits that apply across the country. Most areas fall between these floor and ceiling amounts, reflecting their average housing costs. However, high-cost areas can have limits that exceed the floor, reaching up to the national ceiling to accommodate more expensive housing markets. For instance, in 2025, the FHA floor for a single-family home loan is $524,225, while the ceiling for high-cost areas is $1,209,750.
How FHA Loan Limits Are Established
The Department of Housing and Urban Development (HUD), which oversees the FHA, determines these loan limits annually. The methodology assesses median home prices in a specific area, often tying them to conforming loan limits set by the Federal Housing Finance Agency (FHFA) for conventional loans. FHA limits are often set as a percentage of these conforming loan limits.
For most areas, the FHA loan limit for a one-unit property is calculated as 65% of the national conforming loan limit. However, for areas with higher housing costs, the limit can be set at 115% of the median home price in that area, provided it remains between the national floor and ceiling. High-cost area limits can reach up to 150% of the conforming loan limit. These annual adjustments ensure that FHA loan limits remain responsive to changes in local housing market conditions and property values.
Impact of Property Type on FHA Loan Limits
Within any FHA loan limit area, the maximum loan amount depends on the number of dwelling units in the property. The FHA sets distinct limits for different property types, including 1-unit properties, which are typically single-family homes.
Higher limits are established for multi-unit dwellings (2-unit, 3-unit, and 4-unit properties). These increased limits reflect the higher appraised value and construction costs compared to single-family homes. For example, in 2025, the FHA floor for a 2-unit property is $671,200, a 3-unit is $811,275, and a 4-unit is $1,008,300, demonstrating a progressive increase with each additional unit.
Finding Current FHA Loan Limits for Your Area
To determine the precise FHA loan limits applicable to a specific location and property type, individuals need to access official resources. The primary source for this information is the U.S. Department of Housing and Urban Development (HUD) website. It provides a dedicated tool for looking up these limits.
Before using the online tool, have specific details ready: the exact county and state where the property is located, and the number of dwelling units. Users can navigate to the “FHA Mortgage Limits” search page on the HUD.gov website.
On this page, select the appropriate state from a dropdown menu, then the specific county, to view the listed limits for 1-unit, 2-unit, 3-unit, and 4-unit properties. Confirm the information displayed is for the current effective year, as limits are updated annually.