FHA Loan Limits in 2025

How do FHA Loan Limits Work?

FHA loan mortgage limits set the maximum home loan amount the FHA will insure. These limits vary by location and property type, taking into account the cost of housing in different areas across the country. The FHA lending limits help ensure that these government-backed mortgages remain focused on their core mission: helping you buy a house with low income.

Understanding FHA mortgage limits can help determine whether you can use an FHA loan for the property you’re interested in or if you’ll need to explore other financing options. For many first-time buyers and those with modest incomes, staying within these limits can help make homeownership more accessible.

FHA Loan Limits in 2025

The Department of Housing and Urban Development has set new FHA loan limits for 2025, with increases in most areas to keep pace with rising home values. The baseline FHA loan amount limit for low-cost areas, known as the “floor,” is now $524,225 for a single-family home. This applies to areas where 115% of the median home price falls below this threshold.

In high-cost areas, the FHA loan max can reach up to $1,209,750 for a single-family property. This “ceiling” represents 150% of the national conforming loan limit. The Federal Housing Administration loan limits are even higher in special exception areas like Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where the maximum reaches $1,814,625 to account for higher construction costs.

Loan limits also depend on the type of property you’re buying. Single-family homes have limits that are different from those of multiple-unit properties like duplexes or triplexes. This tiered structure ensures that the FHA loan program can accommodate various housing needs, from small starter homes to properties that combine housing with rental income opportunities.

It’s worth noting that FHA loan limits reflect the actual loan amount. This means you’ll need to factor in your down payment when calculating whether a home’s price fits within FHA guidelines. For example, if your area’s FHA loan limit is $524,225 and you’re making a 3.5% down payment, you could potentially buy a home priced around $543,238 ($524,225 loan plus a down payment of $19,013).

Here’s a breakdown of the 2025 FHA limits by property size:

• Low-cost areas (floor):
  • One unit: $524,225
  • Two units: $671,200
  • Three units: $811,275
  • Four units: $1,008,300

• High-cost areas (ceiling):
  • One unit: $1,209,750
  • Two units: $1,548,975
  • Three units: $1,872,225
  • Four units: $2,326,875

• Special exception areas:
  • One unit: $1,814,625
  • Two units: $2,323,450
  • Three units: $2,808,325
  • Four units: $3,490,300

To find the specific FHA loan limits for your county, you can use HUD’s official lookup tool at: https://entp.hud.gov/idapp/html/hicostlook.cfm.

How Are FHA Loan Limits Determined?

The FHA loan amount limits aren’t arbitrary numbers. They’re carefully calculated based on several factors and are adjusted annually. The process starts with the Federal Housing Finance Agency setting the conforming loan limits for conventional mortgages backed by Fannie Mae and Freddie Mac. The FHA then uses these figures as a foundation for determining their own limits.

Local median home prices influence these caps. The FHA analyzes housing costs in each county or Metropolitan Statistical Area (MSA) to establish appropriate limits. This ensures that FHA loans remain accessible while accounting for regional housing market variations. Areas with higher median home prices naturally receive higher FHA limits to maintain the program’s effectiveness in serving local homebuyers.

The calculation process follows specific guidelines set by the National Housing Act. In areas where 115% of the median home price is less than the floor amount, the FHA sets the maximum mortgage amount at the floor. For high-cost areas where median home prices exceed this threshold, the FHA establishes varying limits above the floor based on local housing costs.

The ceiling for high-cost areas is set at 150%. This means that even in the most expensive housing markets, there’s a cap on how high the FHA loan limits can go.

These limits are reviewed and updated each year to reflect changes in the housing market. The annual adjustments help ensure that FHA loans remain viable for homebuyers across different market conditions and geographic locations. When home prices rise significantly in an area, the FHA loan limits typically increase to keep pace with the market, helping maintain access to affordable financing options for potential homebuyers.

FHA Loan Requirements in 2025

While understanding FHA loan limits is essential, it’s just one piece of the puzzle. To qualify for FHA loans, you’ll need to meet several other requirements, such as:

• Credit score: You can qualify with a score as low as 580 with a 3.5% down payment or 500-579 with 10% down.
• Down payments: The minimum down payment is just 3.5% for most borrowers.
• Mortgage insurance: All FHA loans require a mortgage insurance premium (MIP), including an upfront and annual cost.
• Property standards: The home must meet FHA property requirements and undergo FHA appraisal to ensure it’s safe, sound, and secure.

Whether you’re considering an FHA purchase loan, an FHA cash-out refinance, or an FHA streamline refinance, understanding your mortgage lender’s and the FHA’s requirements is essential for a successful loan application.

Learn More About FHA Loan Limits in Your Area

Ready to explore your FHA loan options? The specific limits for your area might differ from the national figures mentioned above. You can easily check your local FHA loan limits using HUD’s online lookup tool or by connecting with a mortgage professional.

For personalized assistance with your FHA loan, consider downloading the Griffin Gold app. Our team at Griffin Funding can help you navigate the FHA loan process and understand exactly how much you might be able to borrow based on your location and circumstances. Reach out today to explore your FHA mortgage options.