FHA loan limits are the maximum amounts you can borrow using a loan backed by the Federal Housing Administration (FHA). They vary by county and property type, defining how much financing you can receive through this government-backed program. Here, we look at what FHA loan limits are, how they’re set, how they vary across the U.S., and what that means for your homebuying strategy.

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What are FHA loan limits?

The Federal Housing Administration (FHA) insures some mortgages, helping lenders protect their interests even while financing homes for borrowers who might otherwise not qualify for a loan. 

If you get an FHA loan, there’s a maximum amount you can borrow. That’s because the FHA sets a cap on how much it will insure for single-family and multifamily properties. If the price of the property you’re considering exceeds the loan limit in your area, you may need to either cover the difference with a larger down payment or consider another type of loan.

FHA loan limits are especially important for first-time buyers and borrowers with moderate incomes who rely on the lower down payment and flexible credit requirements of FHA loans. These limits ensure that the program serves its intended purpose: making homeownership more accessible, particularly in high-cost and underserved areas.

How FHA loan limits are determined

Each year, the U.S. Department of Housing and Urban Development (HUD) reviews median home prices across the country and adjusts FHA loan limits accordingly. These limits are based on a percentage of the national conforming loan limit, which is set by the Federal Housing Finance Agency (FHFA) for conventional loans.

For 2025, the national FHA loan "floor" for a single-family home in low-cost areas is $524,225 while the "ceiling" for high-cost areas is $1,209,750. These figures represent 65% and 150% of the conforming loan limit, respectively. Between these two extremes, counties are assigned specific limits based on local housing prices.

Here's how limits vary by property type in 2025:

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It’s important to note that these are the maximum amounts the FHA will insure — not necessarily the amount you’ll qualify for. Your income, debts, and credit profile will still determine your actual loan eligibility.

FHA loan limits by location

FHA loan limits vary widely depending on where you live. High-cost areas such as San Francisco, New York City, and parts of Southern California typically qualify for the maximum limit due to higher median home prices. Meanwhile, rural or lower-cost counties may remain near the floor limit.

To find your county’s FHA loan limit:

1. Go to the HUD FHA Mortgage Limits page.
2. Select your state and county from the dropdown menus.
3. Review the loan limits by property size.

Knowing your county’s FHA loan limit is critical if you're house hunting near the maximum of your price range. It helps you determine what financing is available — and whether you’ll need to explore alternative loan options for higher-priced homes.

What happens if your home price exceeds FHA loan limits?

If the home you want to buy exceeds the FHA loan limit in your county, you have a few options:

• Make a larger down payment to reduce the loan amount within the allowable limit.
• Consider a conventional loan or a jumbo loan, which may offer higher limits but often come with stricter credit and income requirements.
• Look at homes in different areas with higher FHA loan limits or more affordable pricing.

Keep in mind that while FHA loans are more flexible on credit scores and debt-to-income ratios, they come with other costs like mortgage insurance premiums (MIP). So even if a conventional loan seems more difficult to qualify for, it could be more affordable in the long run for high-priced properties.

FHA loan limits and your buying power

FHA loan limits directly impact how much home you can afford with an FHA-backed mortgage. If you’re shopping in a high-cost market, the higher limits may allow you to buy a more expensive home with just 3.5% down. In more affordable areas, you may find that the standard limits are more than enough for your needs.

Either way, you need to know how much you can borrow with the different options you’re considering. Understanding FHA loan limits also helps you:

• Set realistic expectations while shopping for homes
• Plan for any additional costs if your desired property exceeds the limit
• Compare loan types to see which one offers the best value for your situation

A knowledgeable loan officer or mortgage broker can help you navigate these limits and assess whether an FHA loan is the right path for your home purchase. If not, conventional loans are a solid option. And you can take steps like improving your credit score to boost your chances of qualifying for this type of financing. 

Final thoughts of FHA loan limits

FHA loan limits are a key part of the homebuying equation for borrowers using government-backed financing. These limits vary by location and property type and are adjusted annually based on housing market trends. Before you start your home search, take a moment to look up the FHA loan limits in your area and talk to a lender about how they affect your financing options.

If your ideal home falls within the limit, an FHA loan can be a great way to buy with a low down payment and more flexible qualification criteria. If not, knowing the boundaries will help you explore other options.

Ready to explore your FHA loan options? Use our mortgage rate tables to find the best mortgage rates available based on your borrower profile and your area. Knowing your borrowing power is the first step toward buying your dream home. 

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