Based on current data, FHA loan limits might increase from $524,225 in 2025 to $547,600 in 2026, a 4.46% increase.
FHA loan limits could be on their way up in 2026 and it could help you buy more home.
Each year, the Department of Housing and Urban Development (HUD) updates FHA loan limits based on changes to conventional loan limits.
Looking at these limits, we can get a preliminary idea about FHA changes in 2026.
Current FHA Standard Loan Limits & 2026 Forecast
| Units | Current 2025 FHA Loan Limits | 2026 Forecast |
|---|---|---|
| 1 | $524,225 | $547,600 |
| 2 | $671,200 | $701,150 |
| 3 | $811,275 | $847,450 |
| 4 | $1,008,300 | $1,053,250 |
Current FHA High-Cost Loan Limits & 2026 Forecast
| Units | Current 2025 High-Cost FHA Loan Limits | 2026 High-Cost Limits Forecast |
|---|---|---|
| 1 | $1,209,750 | $1,263,675 |
| 2 | $1,548,975 | $1,617,775 |
| 3 | $1,872,225 | $1,955,525 |
| 4 | $2,326,875 | $2,430,225 |
Will 2026 FHA Loan Limits Increase?
HUD sets FHA limits at 65% of national conventional loan limits set by the Federal Housing Finance Agency, or FHFA, the overseer of Fannie Mae and Freddie Mac.
FHFA determines its loan limits by comparing year-over-year home price changes in the third quarter as measured by its Home Price Index.
As of this writing, only first-quarter data is available. This data sheds light on potential loan limit increases for both conventional and FHA loans.
Using FHFA’s methodology, we find that conventional loan limits might increase by 4.46% assuming Q3 home price increases are similar to those in Q1.
2026 Projected Percentage Change
= (2025 Q1 HPI – 2024 Q1 HPI) / 2024 Q1 HPI
= (417.01 – 399.22) / 399.22*
= 0.0446 (4.46%)
If Q3 home prices are similar to Q1, the conventional loan limit might increase to $842,450 in 2026. To forecast FHA loan limits we use 65% of that number:
FHA loan limits might increase from $524,225 in 2025 to $547,600 in 2026, a 4.46% increase.
In total, 2026 FHA loan limits could rise to the following amounts, assuming the same logic for 2-, 3-, and 4-unit homes. Limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands are set at 150% of the conventional high-cost limit.
| Units | 2026 FHA Standard Limits Forecast | 2026 FHA High-Cost Limits Forecast | 2026 AK, HI, Guam, USVI Forecast |
|---|---|---|---|
| 1 | $547,600 | $1,263,675 | $1,895,525 |
| 2 | $701,150 | $1,617,775 | $2,426,675 |
| 3 | $847,450 | $1,955,525 | $2,933,300 |
| 4 | $1,053,250 | $2,430,225 | $3,645,350 |
Keep in mind, however, that home price increases can change dramatically from quarter to quarter. We won’t know the official 2026 loan limits until FHFA and HUD release final numbers toward the end of November 2025.
How Much Did 2025 FHA Loan Limits Increase?
FHA loan limits increased in 2025 as follows:
$498,257 in 2024 → $524,225 in 2025
It was a 5.2% increase.
Last year's calculation was as follows:
= (2024 Q3 HPI – 2023 Q3 HPI) / 2023 Q3 HPI
= (409.43 – 389.14) / 389.14
= 0.0521 (5.21%)
FHA loan limits increased to 65% of the resulting conventional loan limit. Conventional loan limits rose from $766,550 in 2024 to $806,500 in 2025.
$806,500 X 65% = $524,225
About FHA Standard and High-Cost Loan Limits
Like conventional loans, FHA loans allow higher loan limits for properties in high-cost areas.
Interestingly, FHA high-cost limits match those of conventional loans, allowing up to 150% of the standard conventional limit.
Standard areas: 65% of the conventional limit
High-cost areas: 150% of the conventional limit
HUD also maintains a list of about 350 areas in which loan limits are somewhere between standard and high-cost levels. The 2026 limits for these areas will be determined on a case-by-case basis depending on home price changes within the area.
Can 2026 FHA Loan Limits Decrease?
FHA loan limits cannot decrease even if Q3 2025 home prices declined from the previous year. In this case, FHA loan limits would remain the same.
Likewise, if a particular county’s home prices drop, FHA loan limits will stay the same, following the same guidelines FHFA sets for conventional loans.
When Can FHA Applicants Start Using 2026 FHA Loan Limits?
Most lenders will start accepting new FHA loan limits on January 1, 2026. Higher limits apply to new FHA case numbers after that date. A case number is typically assigned when the homebuyer applies for the loan and a property is identified.
Should You Wait Until 2026 to Buy?
Homebuyers might be tempted to wait for potentially higher loan limits in 2026, especially if they need an FHA loan.
However, there’s no guarantee that limits will increase.
Buyers who can afford a home using today’s FHA loan limits should consider buying before prices have a chance to climb further in 2026.
*Loan limits are based on FHFA’s expanded-data indexes which is why the above figures differ from commonly-cited HPI numbers
