Share This Page:
Related Pages
In the previous section we talked about FHA loan requirements in this section we will dive into FHA loan limits.
Each year, the FHA establishes a cap on the loan amounts they’re willing to insure, referred to as the FHA loan limit. The determination of this amount annually is influenced by the standard loan limits defined by entities like Fannie Mae and Freddie Mac. Additionally, the property type, whether it’s a single-family residence or a duplex, plays a role in shaping these figures.
What are FHA loan limits?
The Federal Housing Administration (FHA) sets loan limits each year for the maximum amount of money it will insure on a mortgage. FHA loan limits vary depending on the type of property and the county where the property is located.
Why are FHA loan limits important?
FHA loan limits are important because they determine how much money borrowers can borrow with an FHA loan. FHA loans are a popular option for first-time homebuyers and borrowers with lower credit scores because they offer flexible down payment requirements and more lenient underwriting guidelines than conventional loans.
2023 FHA Loan Limits ( Low Cost Areas )
For 2023, the baseline for single-family FHA loans is
The FHA loan limit for 2023 is $472,030 for single-family homes in most counties in the United States. However, the FHA loan limit can be higher in high-cost areas. The following table shows the FHA loan limits for different types of properties in low-cost regions:
| Property type | FHA loan limit |
|---|---|
| Single-family home | $472,030 |
| Duplex | $604,400 |
| Triplex | $730,525 |
| Fourplex | $907,900 |
To find out the FHA loan limit in your area, you can use the FHA’s Loan Limit Finder tool.
FHA loans are a great option for first-time homebuyers and borrowers with lower credit scores. FHA loans offer flexible down payment requirements and more lenient underwriting guidelines than conventional loans.
2023 FHA Loan Limits ( High Cost Areas )
In addition to the FHA loan limits for low-cost regions, the FHA also sets higher loan limits for high-cost areas. These higher loan limits are designed to help borrowers in high-cost areas afford to purchase a home.
The FHA loan limit for single-family homes in high-cost areas in 2023 is $1,089,300. The following table shows the FHA loan limits for different types of properties in high-cost regions:
| Property type | FHA loan limit |
|---|---|
| Single-family home | $1,089,300 |
| Duplex | $1,394,775 |
| Triplex | $1,685,850 |
| Fourplex | $2,095,200 |
To find out if you live in a high-cost area, you can use the FHA’s Loan Limit Finder tool.
FHA loans are a great option for borrowers in high-cost areas who may not be able to afford a down payment on a conventional loan. FHA loans offer flexible down payment requirements and more lenient underwriting guidelines than conventional loans.
FHA loan limits can affect borrowers in a few ways. First, they determine how much money borrowers can borrow with an FHA loan. Second, they can affect the price of homes that borrowers can afford to buy.
FHA loan limits are an important factor to consider for borrowers who are considering an FHA loan. Borrowers should understand the FHA loan limits for their area and the type of property they are interested in purchasing before they start shopping for a home.
Have a question about FHA loan limits in your area? Call us here at LeaderOne Financial at (855) 971-1050. One our FHA loan specialists we answer any questions that you might have.
Click here to read about the FHA 203k loan in the next section.