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 2025? Great question – let's dive into what you need to know about this loan from the FHA.
What Is An FHA Loan Limit?
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 $524,255 nationwide in 2025. In counties where housing costs are higher, loan limits are decided on the county level. The ceiling for loan limits in the continental U.S. is $1,209,750. Alaska, Hawaii, Guam and the U.S. Virgin Islands have still higher ceilings of up to $1,814,625 for a single unit to account for higher construction costs related to materials transport. However, limits still vary by county in these states and territories.
2025 FHA Loan Limits
Here are the 2025 FHA loan limits based on property type:
| Number Of Units | Loan Limit Floor In Most Areas | Loan Limit Ceiling In High-Cost Areas | Alaska and Hawaii |
|---|---|---|---|
| 1 | $524,255 | $1,209,750 | $1,814,625 |
| 2 | $671,200 | $1,548,975 | $2,323,450 |
| 3 | $811,275 | $1,872,225 | $2,808,325 |
| 4 | $1,008,300 | $2,326,875 | $3,490,300 |
How FHA Loan Limits Work
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 2025 conforming loan limit is $806,500 for a single-family home in most areas, but in high-cost areas, it's $1,209,750. It goes up for more units in a home, which we outline below:
| Number Of Units | Loan Limit In Most Areas | Loan Limit Ceiling In High-Cost Areas |
|---|---|---|
| 1 | $806,500 | $1,209,750 |
| 2 | $1,032,650 | $1,548,975 |
| 3 | $1,248,150 | $1,872,225 |
| 4 | $1,551,250 | $2,326,875 |
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.
Qualifying For An FHA Loan
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:
- Debt-to-income ratio: The FHA requires that your debt-to-income ratio (DTI) – the percentage of monthly gross income that goes toward paying debt – should not exceed 43% of monthly gross income. However, if you have a higher credit score, you may be able to qualify with a higher DTI.
- Credit score: A credit score is a three-digit number that helps lenders determine how well a home buyer has paid off debt and how well they will do in the future. Minimum FHA loan credit scores are 580 to qualify with a 3.5% down payment. Rocket Mortgage doesn’t offer this option, some FHA loans allow qualifying with a credit score as low as 500, although this requires a 10% down payment.
- Down payment amount: The down payment is the amount home buyers put down as a percentage of the home price. As we just mentioned, you can qualify for an FHA loan with a credit score of 580 with a 3.5% down payment or a credit score of 500 – 579 with a 10% down payment.
- Primary residence: The home must be your primary residence, meaning it can't be an investment property or second home.
- Income requirements: While there are no hard-and-fast rules about how much income you must make as a borrower, you must be able to show proof of regular income through items, such as pay stubs, W-2s, federal tax returns and bank statements.
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.
FHA Loan Limit FAQs
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.
Will FHA loan limits increase in 2026?
The FHA sets new loan limits every year, which go into effect January 1. For example, the loan limits were up 5.21% between 2024 and 2025 so that the loan limit floor is $524,255 You can keep tabs on the FHA loan limits with Rocket Mortgage® at the beginning of each year.
Where can I find my county’s FHA loan limit?
You can find your county's FHA loan limit using a search engine maintained by the Department of Housing and Urban Development. This outlines the state, county and corresponding FHA loan limit very clearly. The limit that applies to you depends on where you live.
What is the maximum amount you can borrow with an FHA loan?
The maximum amount you can borrow with an FHA loan is $3,490,300, 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.
Can I dispute FHA loan limits?
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.
How do I get an FHA loan?
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.
The Bottom Line
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.
Melissa Brock
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