UPDATED: Apr 18, 2024
If you're planning to purchase a home, one of the main questions you might have relates to the type of loan you plan to get. If you feel you may not get approved for a conventional loan, an FHA loan (backed by the Federal Housing Administration) could be a great option.
FHA loans require a lower credit score, income and down payment, and offer more favorable interest rates than other loan types.
But what are FHA loan limits, and what else should you know about FHA loans for 2024? Great question – let's dive into what you need to know about this loan from the FHA.
What exactly is a loan limit? Put simply, loan limits tell you the maximum amount of money you can borrow for a home based on where you live.
An FHA loan limit depends on the location and number of units in the home. For a one-unit home, the loan limit is typically $498,257 nationwide in 2024. In counties with the highest housing costs, the FHA 1-unit loan limit is $1,149,825, while in Alaska, Hawaii, Guam and the U.S. Virgin Islands, it is $1,724,725.
On the flip side, the FHA max loan limit for a 4-unit home is $3,317,400.
Here are the 2024 FHA loan limits based on property type:
Unit Type |
FHA Loan Limit In Most Areas |
FHA Loan Limit In High-Cost Areas |
FHA Loan Limit In Alaska, Hawaii, Guam and the U.S. Virgin Islands |
1-Unit Home |
$498,257 |
$1,149,825 |
$1,724,725 |
2-Unit Home |
$637,950 |
$1,472,250 |
$2,208,375 |
3-Unit Home |
$771,125 |
$1,779,525 |
$2,669,275 |
4-Unit Home |
$958,350 |
$2,211,600 |
$3,317,400 |
The FHA insures loans designed for borrowers who benefit from lower down payments and less stringent qualifying criteria. But how does the FHA decide on the loan limits?
The FHA determines loan limits by examining two factors: The current conforming conventional loan limits and the median price of a home in an area. What exactly does "conventional loan limit" mean?
A conventional loan is a loan that the government doesn't insure or guarantee. Conforming conventional loans meet Fannie Mae and Freddie Mac guidelines, which means they meet the requirements to be underwritten, funded and sold to these government-sponsored entities that guarantee mortgages in the U.S. They are then sold to investors on the open markets.
The 2024 conforming loan limit is $766,550 for a single-family home in most areas, but in high-cost areas, it's $1,149,825. It goes up for more units in a home, which we outline below:
Unit Type |
Conforming Loan Limit In Most Areas |
Conforming Loan Limit In High-Cost Areas |
1-Unit Home |
$766,550 |
$1,149,825 |
2-Unit Home |
$981,500 |
$1,472,250 |
3-Unit Home |
$1,186,350 |
$1,779,525 |
4-Unit Home |
$1,474,400 |
$2,211,600 |
The FHA uses these conforming loan limits as a baseline to help determine the floor and ceiling for the FHA loan limits. The FHA loan limit floor is 65% of the national conforming loan limit, while the ceiling is 150% of the national conforming limit.
The FHA also considers the median home sale price and adjusts its loan limits at 115% of the median sale home price, but it's adjusted against the national floor and ceiling amounts. For example, if a county has a median home price that exceeds 115% of the floor, the FHA loan limit goes up.
Here's a common question among borrowers: What are the requirements for getting an FHA loan? The FHA and HUD (the U.S. Department of Housing and Urban Development) set FHA loan requirements and allow lenders to decide which types of FHA loans to offer. Here are some common FHA loan requirements:
In addition, you must get your home appraised by an FHA-approved appraiser, which means an appraiser will determine the fair market value of a home by looking at the property itself. Within 60 days of closing, you must also occupy the property and an inspection must report whether it meets property standard guidelines for the FHA.
Are you considering this home loan type? Let's look at a few frequently asked questions about FHA loans to help you decide whether this loan type is right for you.
The FHA sets new loan limits every year, which go into effect January 1. For example, the 2023 limit of $1,089,300 raised 5.5% to become $1,149,825 in 2024. You can keep tabs on the FHA loan limits with Rocket Mortgage® at the beginning of each year.
You can find your county's FHA loan limit using a map that the FHFA maintains. The map outlines the state, county and corresponding FHA loan limit very clearly. The limit that applies to you depends on where you live.
The maximum amount you can borrow with an FHA loan is $3,317,400, for a 4-unit home in Alaska, Hawaii, Guam or the U.S. Virgin Islands. However, the maximum amount you can borrow depends on where you live and the maximum loan limits in your area.
Borrowers can only borrow up to the maximum loan limit it will insure. You can borrow up to that limit, and if you want to buy a house that exceeds this limit, you must pay the difference using your own money.
You can get an FHA loan after you choose a mortgage lender, apply for an FHA loan and gather the pertinent personal and financial documents required. Your lender will then submit your application and work on a loan estimate for you.
FHA loans are a great option if you have a lower credit score, have a lower down payment or could benefit from looser financial requirements to qualify. Another perk: You can also roll your closing costs into your loan.
It’s important to research the FHA loan limits to understand the maximum amount you can borrow with an FHA loan.
Want to know more about getting an FHA loan? Start the application process today and find out which mortgage option is right for you.
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