What Is the Max FHA Loan Amount for Your Area?

An FHA loan is a home mortgage insured by the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD). These loans aim to make homeownership more accessible, particularly for first-time homebuyers, by offering flexible qualification criteria compared to conventional mortgages. While originating from private lenders, FHA loans have specific maximum limits set by the government. This article explains how these limits are determined and how to find them.

Understanding FHA Loan Limits

FHA loan limits are established by HUD annually to ensure loans remain accessible while reflecting current housing market values. These limits are based on median home prices in an area and are influenced by conforming loan limits for conventional loans. HUD calculates these limits based on the National Housing Act, setting them at 115% of the area median home prices, subject to specific floor and ceiling values.

The FHA sets a national “floor” for low-cost areas and a “ceiling” for high-cost areas. For 2025, the FHA loan limit for a single-unit property in low-cost areas is $524,225. Conversely, the FHA loan limit for a single-unit property in high-cost areas can reach $1,209,750. These figures are adjusted each year, effective January 1st, to account for changes in market conditions and home prices.

Factors Affecting FHA Loan Limits

FHA loan limits vary due to factors reflecting diverse housing markets across the United States. Geographic location is a primary determinant, as limits are set by county and Metropolitan Statistical Area (MSA). This localized approach ensures loan amounts align with median home prices in specific regions.

The type of property plays a role in determining the FHA loan limit. Limits differ based on the number of dwelling units, such as a single-family home, duplex, triplex, or fourplex. Multi-unit properties have higher loan limits than single-unit homes due to their increased cost. For instance, a four-unit property in a high-cost area could have a higher limit than a single-family home.

HUD designates areas as “high-cost” or “low-cost” relative to the national median home price, which directly impacts the available loan limit. An area is classified as high-cost if its loan limit exceeds 115% of the median home price. This designation ensures FHA loans remain a viable option for homebuyers in both affordable and more expensive housing markets.

Locating Current FHA Loan Limits

To determine the FHA loan limit for a specific county and property type, use the official HUD website. The HUD website offers a search tool to find FHA mortgage limits by inputting state, county, and year.

When using the tool, select “FHA Forward” as the limit type and the correct year, as limits update annually. The search results display FHA loan limits for single-unit, two-unit, three-unit, and four-unit properties. This method provides up-to-date information for understanding the maximum loan amount for a home.

Special Considerations for FHA Loan Limits

Certain FHA programs offer special rules for loan limits, allowing for specialized financing. The FHA 203(k) Rehabilitation Loan enables borrowers to finance both the purchase and renovation of a home with a single mortgage. For these loans, the maximum loan amount is based on the home’s value plus eligible repair costs. The total combined amount must fall within the FHA loan limit for the area and property type.

Another program is the FHA Energy Efficient Mortgage (EEM). This option allows borrowers to finance energy-efficient improvements to a home, such as installing solar panels or upgrading insulation. The cost of these improvements can be added to the loan amount even if it pushes the total above the standard FHA loan limit. The additional amount for energy improvements is capped at the lesser of 5% of the property’s adjusted value, 115% of the median area price, or 150% of the national conforming loan limit.