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FHA Loan Limits by County 2026: How Much You Can Borrow

Ante Mazalin avatar image
Last updated 10/14/2025 by
Ante Mazalin
Edited by
Andrew Latham
Andrew Latham
Summary:
FHA loan limits define the maximum amount you can borrow under the Federal Housing Administration’s mortgage program. These limits vary by county and property type, reflecting local housing costs. For 2025, the baseline limit for a single-family home is expected to rise in most areas due to higher median home prices.
FHA loans make homeownership possible for many Americans, but you can’t borrow unlimited amounts. The FHA sets annual loan limits based on median home prices in each county. Understanding how these limits work—and how they affect your buying power—can help you plan your home purchase or refinance more strategically.

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What Are FHA Loan Limits?

FHA loan limits are the maximum amounts lenders can approve under the FHA mortgage insurance program. They ensure loans stay within the scope of moderate-income housing.
  • Limits vary by county and property type (1–4 units).
  • Updated annually by the U.S. Department of Housing and Urban Development (HUD).
  • Based on a percentage of conforming loan limits set by the Federal Housing Finance Agency (FHFA).
Good to Know: FHA loan limits are designed to match regional housing costs. High-cost areas like California or New York City have higher limits than rural counties.

FHA Loan Limits 2026 (Expected)

The 2026 FHA loan limits are projected to rise in most markets to reflect home price growth. Here’s an overview based on current estimates:
Property TypeLow-Cost Area (Floor)High-Cost Area (Ceiling)
1-Unit (Single-Family)$498,257$1,149,825
2-Unit$637,950$1,472,250
3-Unit$771,125$1,779,525
4-Unit$958,350$2,211,600
These limits apply to FHA-insured mortgages closing on or after January 1, 2025. The “floor” applies to most U.S. counties, while the “ceiling” applies to designated high-cost housing areas.
Helpful Insight: Alaska, Hawaii, Guam, and the U.S. Virgin Islands often have higher loan ceilings to account for unique local housing markets.

How FHA Loan Limits Are Calculated

HUD determines FHA loan limits using two key benchmarks:
  • Floor limit: 65% of the national conforming loan limit.
  • Ceiling limit: 150% of the national conforming loan limit.
Each county’s median home price determines whether it falls under the floor, ceiling, or a midpoint “standard-cost” range.
Pro Tip: Use the official HUD loan limit lookup tool to find your exact FHA limit by county and property type.

Why FHA Loan Limits Matter

Your county’s FHA loan limit determines the maximum mortgage you can get under FHA guidelines. Exceeding that limit means you’ll need a **jumbo** or **conventional** loan instead.
  • First-time buyers: Ensures FHA loans remain accessible for median-priced homes.
  • Refinancers: Determines eligibility for FHA streamline or cash-out refis.
  • Multi-unit buyers: Higher limits make small multifamily investment possible.

How to Check Your County’s FHA Limit

You can find your local limit using HUD’s online lookup tool:
  1. Go to HUD.gov FHA loan limit search.
  2. Select your state and county.
  3. Review the limits by property size (1–4 units).
Expert Insight: If your loan amount is near your county limit, consider comparing FHA with conventional financing to see if you can avoid long-term MIP costs.

Pros and Cons of FHA Loan Limits

WEIGH THE RISKS AND BENEFITS
Here is a list of the benefits and drawbacks to consider.
Pros
  • Protects borrowers from taking on oversized debt.
  • Adjusts annually to reflect changing housing costs.
  • Allows higher borrowing in expensive metro areas.
  • Supports multi-unit purchases with increasing limits.
Cons
  • May restrict borrowing in high-priced markets.
  • Limits don’t always rise as fast as local prices.
  • Borrowers needing larger loans must switch to conventional programs.

Alternatives to FHA Loans

1. Conventional Loans

Best for: Borrowers with good credit and stable income.
Highlights:
  • Backed by private lenders, not the government.
  • Minimum down payment: 3% (with PMI).
  • No upfront mortgage insurance premium (unlike FHA).
  • PMI can be removed once you reach 20% equity.
Why it’s an alternative: If your credit score is 620+, a conventional loan can be cheaper over time because you can remove mortgage insurance.

2. VA Loans

Best for: Eligible military members, veterans, and their spouses.
Highlights:
  • Backed by the U.S. Department of Veterans Affairs.
  • No down payment required in most cases.
  • No PMI, and competitive interest rates.
Why it’s an alternative: VA loans often beat FHA loans for eligible borrowers due to lower costs and zero down payment.

3. USDA Loans

Best for: Low- to moderate-income borrowers in rural or suburban areas.
Highlights:
  • Backed by the U.S. Department of Agriculture.
  • No down payment required.
  • Low mortgage insurance rates compared to FHA.
Why it’s an alternative: For qualifying rural buyers, a USDA loan can be more affordable than an FHA loan.

4. State and Local First-Time Homebuyer Programs

Best for: First-time or low-income buyers.
Highlights:
  • Down payment assistance, grants, or below-market interest rates.
  • Can be combined with FHA, VA, or conventional loans.
Why it’s an alternative: These programs can make homeownership accessible without the long-term costs of FHA mortgage insurance.

Bringing It All Together

FHA loan limits shape what you can borrow, where, and under what terms. Knowing your county’s limit helps you shop smarter and avoid surprises. If your dream home exceeds the FHA cap, consider a conventional or VA loan to expand your budget without sacrificing affordability.

Key Takeaways

  • FHA loan limits vary by county, property size, and cost of living.
  • For 2025, the national baseline is $498,257 for single-family homes.
  • HUD updates limits annually to reflect housing market trends.
  • High-cost areas have higher ceilings—over $1 million in some regions.

What’s Next

Compare current offers from trusted FHA-approved lenders to find the best rate and terms.
Smart Move:Compare rates and eligibility from multiple FHA lenders—without affecting your credit score.

Related FHA Loan Articles

FAQs

How often do FHA loan limits change?

HUD updates FHA loan limits every year based on new home price data from the FHFA.

Do FHA loan limits include the down payment?

No. Limits apply to the total loan amount, not the home’s purchase price or your down payment.

Can FHA loan limits differ within the same state?

Yes. Limits are set by county, so neighboring counties may have very different caps depending on median home prices.

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