What are FHA loan limits?

Very nice homeThe Federal Housing Administration (FHA) sets the maximum loan limit for US counties each year. Except for properties situated in Metropolitan Statistical Areas (MSAs) as established by the Office of Management and Budget, loan limitations are set by the county in which a property is located.

The FHA established (forward lending) ceilings for single-family homes at 115 percent of median house values. FHA loan limitations are the maximum amount you may borrow with an FHA-backed mortgage. These limitations vary by county and are modified on a yearly basis depending on home prices. FHA loan limitations are classified into two types: "low cost" and "high cost."

The cost of living and population density have a significant role in determining whether a region is "high cost" or "low cost." When a significant number of houses in a certain region greatly exceeds the median home value, the lending limit for that area rises. Limits for low-cost regions are established at 65 percent of the baseline conforming level. High-cost regions may exceed 150 percent of the baseline.

Here are the FHA lending limits for 2021:

Notice that the lending limits increase with multiple unit properties.

 Low-cost area limits

The FHA national low-cost area mortgage limitations, which are set at 65 percent of the national conforming limit of $548,250 for a one-unit property, are as follows,

Single Family - $356,362
Duplex - $456,275
Triplex - $551,500
Four-Unit (Quadplex)

High-cost area limits

The FHA national high-cost region mortgage limitations, which are set at 150 percent of the national conforming limit of $548,250 for a one-unit home, are as follows:

Single Family - $822,375
Duplex - $1,053,000
Triplex - $1,272,750
Four-Unit (Quadplex)

Hawaii, Guam, and the Virgin Islands have special allowances for them:

  • One-unit: $1,233,550
  • Two-unit: $1,579,500
  • Three-unit: $1,909,125
  • Four-unit: $2,372,625

FHA sales price limits

What is the maximum sales price for a home with an FHA mortgage?

To determine the maximum sales price for a home with an FHA mortgage, simply divide the maximum loan amount for your county by 96.50%.
For example: $356,362/96.50% = $369,287