FHA loan limits are the maximum loan amount that the Federal Housing Administration (FHA) will insure for a mortgage. These limits vary by county and are based on the median home price in the area. The purpose of FHA loan limits is to ensure that all borrowers have access to affordable financing, regardless of where they live.
One reason why FHA loan limits vary by county is that housing costs can vary significantly from one area to another. For example, the median home price in a rural area may be much lower than in a large urban city. By basing FHA loan limits on the median home price in an area, the FHA can ensure that borrowers in all parts of the country have access to affordable financing options.
Another reason why FHA loan limits vary by county is to account for differences in the local economy. In some areas, the economy may be stronger and housing prices may be higher, while in other areas, the economy may be weaker and housing prices may be lower. By adjusting FHA loan limits based on local economic conditions, the FHA can help ensure that borrowers in all parts of the country have access to financing that is appropriate for their local market.
In addition to these reasons, FHA loan limits also vary by county to account for differences in the cost of living. For example, the cost of living in a high-cost area like San Francisco may be much higher than in a lower-cost area like Indianapolis. By adjusting FHA loan limits based on the cost of living, the FHA can help ensure that borrowers in all parts of the country have access to affordable financing options that are appropriate for their local market.
Depending on where you live, you may fall into a “low cost area”, “high cost area”, or in a “blended area” that is above the “floor” but below the “ceiling” specified below. There are also outlier areas such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands that have their own ceiling for FHA loan amounts.
| Property Size | Low-Cost Area “Floor” | High-Cost Area “Ceiling” | Alaska, Hawaii, Guam, and U.S. Virgin Islands “Ceiling”1 |
| One-Unit | $472,030 | $1,089,300 | $1,633,950 |
| Two-Units | $604,400 | $1,394,775 | $2,092,150 |
| Three-Units | $730,525 | $1,685,850 | $2,528,775 |
| Four-Units | $907,900 | $2,095,200 | $3,142,800 |
To get a true understanding of whether the home you’d like to buy would qualify for an FHA loan, click here or visit https://www.totalmortgage.com/apply to get an pre-qualification in under 3 minutes with no impact to your credit score.