Understanding FHA Loan Limits by State

FHA loan limits can vary from state to state as they often depend on the median home prices within the area. Knowing local FHA county loan limits can help you plan for your future home and payments.

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Last Updated: 8/10/2022
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FHA loans are a type of mortgage insured by the Federal Housing Administration (FHA). They’re a suitable option for first-time homebuyers as they have lower minimum requirements than traditional mortgages, like a 3.5% down payment and a credit score of at least 500.

However, borrowers cannot just get approval for any amount. FHA loan limits are strict and vary based on factors including the location of your desired home.

Understanding these limits can help you determine if an FHA loan is right for your needs or if you should look at conventional loans instead. Explore the limits for different types of homes and understand how they’re calculated and why this matters.

Key Takeaways

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FHA loan limits are the maximum amount you are allowed to borrow on an FHA loan.

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The FHA’s loan limit range for 2022 is $420,900 to $925,750 for most areas, with a ceiling of $970,800 for high-cost areas.

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Understanding FHA’s loan limits ensures you can plan and determine what home to buy.

What Are FHA Loan Limits?

Congress established the Federal Housing Administration (FHA) in 1934 to help Great Depression-era Americans purchase homes. As the nation became dominated by renters due to strict mortgage terms, FHA loans were intended to help Americans achieve their dream of homeownership.

However, FHA loans were not designed to replace mortgages from private lenders. To prevent this, FHA places strict limits on how much money you can borrow, as it is only meant to help those who can’t qualify for conventional loans.

In essence, FHA loan limits are the maximum amount the FHA will insure your mortgage for, based on the type of home you’re buying and your location. These limits vary given how median home prices change, depending on property type and local housing values. Additionally, FHA loan limits are updated annually to account for inflation.

FHA Loan Limits for 2022

For most one-unit homes, the FHA’s loan limits range between $420,900 to $925,750. The highest limit for most areas is around $45,100 less than the ceiling limit in high-cost areas, which stands at $970,800. However, compared to 2021, the ceiling limit for one-unit homes increased by $148,425 in 2022.

Review the FHA’s loan limits for 2022 below for different property types to see what your limit will look like.

  • Type of Unit
    Most Areas
    High-Cost Areas
  • 1-Unit Home

    $530,541

    $970,800

  • 2-Unit Home

    $679,181

    $1,243,800

  • 3-Unit Home

    $820,974

    $1,502,475

  • 4-Unit Home

    $1,020,282

    $1,867,275

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STAY UP-TO-DATE WITH FHA LOAN LIMITS

Homebuyers should pay attention to announcements by the FHA, particularly if they're planning to purchase at the end of any year. Had FHA announced higher limits for 2015, savvy home buyers could have delayed their purchase of a new home and mortgage application until the following year to capitalize on the higher loan limits. So it's always wise to stay informed.

How Can I Find the FHA Loan Limit for my County?

The Department of Housing and Development (HUD) provides an online tool on their website to help you navigate the limits of your county.

If you want to use this tool, select your state from the drop-down list and type in your county. Then, set the "Limit Type" drop-down to "FHA Forward." The rest of the information should remain the same or empty, then click "send." You should see the conforming loan limits for your county under the "One-Family" column.

How Are FHA Loan Limits Calculated?

FHA loan limits are reassessed annually by HUD. The maximum amount of money that can be borrowed depends on the home’s location and the total number of units.

Generally, locations with lower costs will have a lower "floor," while areas with more significant costs will have a higher "ceiling." The "floor" for FHA loans at the national level is set at 65% of the conforming loan limit, while the "ceiling" for FHA loans at the national level is set at 150% of the conforming loan limit.

The price ceiling in high-cost places, typically densely populated cities like the Florida Keys or Los Angeles, generally is greater than in suburban areas. However, a high-cost area is defined as any location where the loan limit is higher than the floor. Remember that the increased FHA loan limits are only applicable in these high-cost areas.

In addition to location, the lending limit will also change depending on the property that you intend to buy. When compared to a single-family home, for instance, a property with four separate apartments will have a higher loan limit.

It is typical practice for the FHA to announce the loan limits for the following year toward the end of the current year.

FHA Loan Limits By The Numbers
  • Numbers
    Description
  • 2557
    Number of counties with loan limits below $300,000
  • 275
    Number of counties with FHA loan limits greater than $300,000 and lower than $400,000.
  • 72
    Number of counties with FHA loan limits greater than $400,000 and lower than $500,000
  • 45
    Number of counties with FHA loan limits greater than $500,000 and lower than $600,000
  • 83
    Number of counties with FHA loan limits greater than $600,000 and lower than $700,000
  • 2
    Number of counties with FHA loan limits greater than $700,000

Why Do FHA Loan Limits Matter?

FHA-insured mortgages offer many benefits, particularly for first-time homebuyers.

  • FHA loans can be easier to qualify for than conventional loans. Lenders might be more willing to lend to you because FHA insures the mortgage, protecting them if you default.
  • FHA loans are available if your credit isn’t perfect. Even if you had problems in the past like bankruptcy, you might be eligible for an FHA mortgage, although you might not qualify for a conventional loan.
  • FHA mortgages require down payments of just 3.5%, a much lower down payment than conventional loans. Your down payment can come from a family member, employer or charitable organization as a gift. Other loan programs do not treat gifts for down payments so liberally.
  • FHA mortgages offer competitive interest rates.

The FHA is not a lender. It does not lend to buyers directly or establish the interest rates on FHA loans. That's why shopping around and comparing mortgage interest rates and terms from different lenders can help you find the best deal.

Interest rates are not the only terms that matter. Loan limits are also critical because they determine the upper limit you can borrow, influencing the maximum price of the house you buy.

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SHOULD LOAN LIMITS INFLUENCE WHERE YOU BUY?

Since the FHA loan limits vary from county to county, they might affect your decision about where to shop for a home. Consider North Carolina's Research Triangle, for example. The 2019 FHA loan limit in the Raleigh area in Wake County was $339,250 for a single-family home.

Next door in Durham County, the FHA limit for a single-family home in 2019 was $403,650. With a higher loan limit, you might be able to afford a higher-priced home. For that reason, homebuyers planning to obtain an FHA mortgage need to consider the location of their new home.

Buying a Home Outside of FHA's Loan Limits

Homebuyers planning to purchase homes in high-cost areas may find that their options are limited under the FHA loan program. The FHA's loan limits may be prohibitively low, thus putting higher-cost homes out of the reach of many buyers.

There's good news for some of these buyers, however. Federal legislation — specifically, Section 214 of the National Housing Act — provides special exceptions for certain areas of the nation.

FHA Loan Limit Exceptions

Alaska, Guam, Hawaii, and the Virgin Islands have their own loan limits. For a single-unit home, this limit may be as much as $721,050, depending on the area, and 150 percent of those limits for some circumstances. Check each state to learn the local limits.

Alaska
Area
Single
Duplex
Tri-Plex
Four-Plex

Aleutians East

$271,050

$347,000

$419,425

$521,250

Aleutians West

$385,250

$493,200

$596,150

$740,850

Anchorage

$388,700

$497,600

$601,500

$747,500

Bethel

$271,050

$347,000

$419,425

$521,250

Bristol Bay

$293,250

$375,400

$453,750

$563,950

Denali

$297,850

$381,300

$460,900

$572,800

Dillingham

$271,050

$347,000

$419,425

$521,250

Fairbanks North

$274,850

$351,850

$425,300

$528,550

Haines

$284,050

$363,600

$439,550

$546,250

Hoonah-Angoon

$271,050

$347,000

$419,425

$521,250

Juneau

$397,900

$509,350

$615,700

$765,200

Kenai Peninsula

$271,050

$347,000

$419,425

$521,250

Ketchikan Gateway

$322,000

$412,200

$498,250

$619,250

Kodiak Island

$381,800

$488,750

$590,800

$734,250

Lake & Peninsula Borough

$271,050

$347,000

$419,425

$521,250

Matanuska-Susitna

$388,700

$497,600

$601,500

$747,500

Nome

$274,850

$351,850

$425,300

$528,550

North Slope

$332,350

$425,450

$514,300

$639,150

Northwest Arctic

$271,050

$347,000

$419,425

$521,250

Petersburg Census Area

$332,350

$425,450

$514,300

$639,150

Prince Of Wales

$271,050

$347,000

$419,425

$521,250

Sitka

$451,950

$578,550

$699,350

$869,150

Skagway Municipality

$374,900

$479,950

$580,150

$720,950

Southeast Fairbanks

$271,050

$347,000

$419,425

$521,250

Valdez-Cordova

$293,250

$375,400

$453,750

$563,950

Wade Hampton

$271,050

$347,000

$419,425

$521,250

Wrangell City & Borough

$332,350

$425,450

$514,300

$639,150

Yakutat City

$420,900

$538,800

$651,300

$809,450

Yukon-Koyukuk

$271,050

$347,000

$419,425

$521,250

Guam
Area
Single
Duplex
Tri-Plex
Four-Plex

Guam

$563,500

$721,400

$872,000

$1,083,650

Hawaii
Area
Single
Duplex
Tri-Plex
Four-Plex

Hawaii (Hilo)

$368,000

$471,100

$569,450

$707,700

Honolulu (Urban)

$721,050

$923,050

$1,115,800

$1,386,650

Kalawao County (Kahului, Wailuku, Lahaina)

$657,800

$842,100

$1,017,900

$1,265,000

Kauai (Kapaa)

$713,000

$912,750

$1,103,350

$1,371,150

Maui County (Kahului, Wailuku, Lahaina)

$657,800

$842,100

$1,017,900

$1,265,000

Virgin Islands
Area
Single
Duplex
Tri-Plex
Four-Plex

St. Croix

$327,750

$419,550

$507,150

$630,300

St. John

$623,300

$797,950

$964,500

$1,198,650

St. Thomas

$446,200

$571,200

$690,450

$858,100

FHA Jumbo Loans

Some homebuyers might be eligible for FHA jumbo loans, which have higher loan limits but come with added qualification requirements. An FHA loan with a principal balance in excess of $271,050 is considered to be a jumbo loan in many parts of the country. As with standard FHA loans, the loan limit ceilings for FHA jumbo loans can change annually and vary by your home's location.

Individual lenders set underwriting guidelines for FHA jumbo mortgages, which vary. Standards are usually tougher for FHA jumbo loans than they are for standard FHA loans to reduce the risk inherent in these larger mortgages. For example, applicants may need a higher credit score to qualify for an FHA jumbo loan.

Similarly, the maximum debt-to-income ratio might be lower for those seeking higher-balance FHA mortgages. Reserve requirements — the amount of assets you need to have on hand at the time you close the mortgage — may be increased. Some lenders might even require two appraisals depending on the property's location, the local housing market's health and how much you plan to borrow.

Frequently Asked Questions About FHA Loan Limits

FHA loan limits can be confusing, given how they vary from state to state and county to county. Review some of the most frequently asked questions about them below.

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