FHA Loan Limits for 2024

FHA-backed mortgages are popular options for first-time homebuyers and borrowers with high debt or a low credit score. In many cases, FHA loans provide a path to homeownership for applicants who otherwise may not be able to obtain a mortgage.

However, the Federal Housing Administration's home loan program has its limits, specifically FHA loan limits. This article covers just how much money you can borrow from an FHA lender by breaking down the current FHA loan limits in 2024.

Key Takeaways

• FHA loan limits vary by county and range from $498,257 to $1,149,825 for a single-family home within the continental United States.

• Maximum loan amounts differ by the type of property. FHA multifamily loan limits are higher than those for single-family homes.

• Conventional limits are higher than FHA loan limits in most areas.

• Regardless of local limits, you still need the income to support the loan you're applying for and must also meet standard FHA requirements.

FHA Loan Limits by Home Type and Location

The maximum amount for an FHA loan varies based on the type of home you’re purchasing and its location. For example, FHA multifamily loan limits in New York City are higher than the limit for a single-family home in Wichita, Kansas.

The maximum FHA loan for a single-family home in most parts of the United States is $498,257 in 2024. However, living in a county designated as a high-cost area may make you eligible for higher limits.

In some areas, the single-unit loan limit climbs as high as $1,149,825, with many communities across the country having limits between these two figures.

FHA loan limits in the special exception areas of Alaska, Hawaii, Guam, and the US Virgin Islands are even higher due to the cost of construction in these locales. The single-family limit in these areas is $1,724,725.

For a better idea of the current limits for FHA-backed mortgages, here’s a chart comparing maximum loan amounts by area and the number of residences on the property.

*limits apply to the special exception areas of Alaska, Hawaii, Guam, and the US Virgin Islands

How Do FHA Loan Limits Compare to Conventional Loan Limits?

FHA loan limits tend to be lower than conventional loan limits in most parts of the country. While the base FHA limit for a single-family home is $498,256, conventional loan limits start at $766,550.

Here’s a chart showing how FHA mortgage limits stack up against conforming loans in standard-cost communities.

In high-cost areas, however, the FHA loan limit is in sync with conventional maximums. In these counties, you may be able to obtain an FHA mortgage for the same amount as a conventional loan and for both single-unit and multifamily loan limits.

Keep in mind that many housing markets may have loan maximums between the standard and high-cost amounts.

For example, the FHA loan limit for a one-unit home in San Antonio, Texas, is $557,750, while conventional lenders abide by their standard limit of $766,550.

The best way to find your local FHA county loan limits is with HUD’s FHA loan limit tool. Simply choose your state and county, make sure the tool is set to “FHA Forward” and the current year, and then hit “send.”

Image: HUD. Callout boxes added.

Conventional loan limits may also be set between the standard and high-cost maximums in some locales. For instance, the 2024 one-unit conventional loan limit in Steamboat Springs, Colorado, is $1,012,000.

You can check the conventional loan limits – also referred to as conforming loan limits – for your area with the Fannie Mae lookup tool.

Image: Fannie Mae. Callout box added.

How Do FHA Loan Limits Compare to Other Loan Types?

FHA and conventional mortgages aren’t the only two options available to homebuyers. Other loan programs have different limits; some don't even set a maximum mortgage size.

• USDA Loan Limits: The USDA Rural Development program does not set loan limits. Its income limits naturally cap how much someone can borrow.

• VA Loan Limits: The Department of Veterans Affairs does not set a maximum loan limit for VA loans. Eligible VA applicants are only restrained by their personal loan limit – the amount they qualify to borrow.

• Jumbo Loan Limits: Jumbo loans are mortgages that exceed an area’s conforming loan limits. Each lender sets their own rules for issuing jumbo loans, including the maximum limit. Some mortgage companies may set jumbo loan limits at $2 or $3 million, while others let qualified applicants borrow much more.

How FHA Loan Limits Work

FHA loan limits are established annually by the US Department of Housing and Urban Development (HUD) in accordance with the National Housing Act. The maximum mortgage for standard-cost areas is 65% of the national conforming loan limit.

For example, the standard FHA single-family limit of $498,257 is 65% of the standard conventional limit of $766,550.

The FHA loan limit for high-cost areas is set at 150% of the national conforming limit, which is the same as for conventional mortgages.

In some communities, HUD sets FHA loan limits by county based on the local cost of housing. Counties between the base and high-cost figures have FHA loan limits fixed at 115% of the area’s median home sale price.

HUD typically announces annual limit increases in late November, with changes taking effect on January 1.

Your Personal Loan Limit Is Based on Income and Down Payment

Remember that the loan limits covered so far are program maximums – the amount you're eligible to borrow may be lower. Regardless of the limit for your county, you still need to have the income and down payment to support the mortgage you’re applying for.

For example, if the lender you’re working with allows a housing (or DTI) ratio of 45%, your monthly housing expense can add up to 45% of your qualifying income.

In this scenario, if you earn $5,000 per month, you may qualify for an all-inclusive house payment as high as $2,250. While numerous factors impact how your payment amount translates into your personal loan limit – such as insurance costs, property taxes, and the current interest rate – the personal limit here is likely well below FHA county loan limits.

Similarly, the size of an FHA loan is also limited by the down payment you have available. Lenders can loan up to 96.5% of a property's value, with the buyer expected to contribute 3.5% (although you may be able to use down payment assistance to reduce this amount).

This means that to use an FHA loan to purchase a $400,000 home, you need a down payment of $14,000 in addition to your closing costs and any required reserves. If you only have $10,000 available to put down, your purchasing power is limited to around $276,000.

Loan Limits Apply to the Loan, Not the Home Price

One common misconception about loan limits is that they apply to the home price. That’s not the case. In reality, FHA loan limits are simply the maximum amount of money FHA lenders can let someone borrow on a single property.

There is no limit to the price of a home you can purchase with an FHA loan (or conventional mortgage, for that matter).

For example, if you live in a standard-cost area and want to purchase a $1 million home, you could borrow the $498,257 FHA mortgage limit and cover the remainder of the price in cash or with another type of financing.

Can You Get More Than the FHA Loan Limit?

If you're worried that FHA county loan limits may hold you back from purchasing the home you want, you may have other options for borrowing more.

Some strategies for expanding your homebuying power include:

• Checking whether your local area offers higher standard limits

• Applying for a conventional mortgage

• Using a combination of loans

• Increasing your down payment

How FHA Jumbo Loans Work

While the FHA does not technically have a jumbo loan program, you’ll sometimes see agency-backed mortgages for more than the base limit, referred to as FHA jumbo loans.

Although FHA jumbo loans follow the same agency guidelines to qualify borrowers, many lenders impose their own higher credit score requirements or other overlays for FHA mortgages that are above the standard limit.

What Is a Fannie Mae High-Balance/Freddie Mac Super Conforming Loan?

Fannie Mae and Freddie Mac are the two major agencies that create the rules for most conventional mortgages. Each has its own name for loans in high-cost areas above the standard limit but still within the area maximum.

For example, if you wanted a loan for $900,000 in Seattle, Washington, you could use a Fannie Mae or Freddie Mac loan since the local limit is $977,500 for 2024. However, this loan is called a High-Balance loan if you received Fannie Mae financing and Super Conforming if Freddie Mac.

High-Balance and Super Conforming loans come with restrictions compared to loans within standard limits. For example:

• Higher down payments

• Higher rates

• Fewer loan features available

The Federal Housing Administration does not have extra limitations on its loans that exceed the standard limit. However, some lenders may impose their own restrictions or terms.

Our Take: Use Higher Loan Limits to Avoid Jumbo Loans

Jumbo loans are useful for high-net-worth individuals buying expensive homes. However, they are much harder to qualify for than an FHA or standard conventional loan.

For example, you may need 20% down for a jumbo loan. A few lenders offer jumbo loans at 5-10% down, but not many.

Plus, you’ll need near-perfect credit for most of these products.

However, if you’re buying a home in a high-cost area like Seattle, Los Angeles, Denver, or Boston, you may qualify for a large FHA or conventional loan, bypassing the extra requirements for jumbo loans.

Check your local limits if you’re considering a jumbo loan. You may find it easier to qualify for low-down-payment FHA or conventional financing.

Other FHA Loan Requirements

In addition to adhering to FHA loan limits for your area, qualifying for an FHA-backed mortgage also means meeting other program requirements.

Credit Score / Down Payment

The FHA requires a minimum credit score of 580 to qualify for a 3.5% down loan. Applicants with a 10% down payment may be eligible with a score of 500, although not all lenders offer this option.

Debt-to-Income Ratio

Lenders use your debt-to-income (DTI) ratio to determine what size payments – and how large of a loan – to qualify you for. In general, FHA lenders can approve borrowers with a total DTI as high as 56.9%.

Mortgage Insurance

All FHA loans have an upfront mortgage insurance premium (UFMIP) of 1.75%. You can wrap this fee into your loan balance or pay for it at closing. You are also responsible for monthly mortgage insurance premiums, charged at an annual rate of roughly 0.5% of your loan amount.

Appraisal / Minimum Property Requirements

While nearly all purchase loans require a home appraisal, FHA mortgages have stricter property standards than some other programs. In addition to assessing value, your FHA appraiser checks to ensure the home meets the agency's minimum property requirements.

Employment Requirements

Most FHA borrowers need to be currently employed and have two years of consistent documented income, including pay stubs and tax returns. However, getting approved with employment gaps or a shorter work history may be possible. Self-employed borrowers should plan on needing to submit additional documentation.

Generous Loan Limits Help You Buy More Home

FHA loan limits are typically lower than conventional mortgages, although some areas have higher maximums than others. In high-cost communities, the limits for FHA and conventional loans may be the same.

To discover the FHA limit for your area and the personal loan limit you can qualify for, check out today's current mortgage rates and apply with an FHA lender serving your community.