FHA Loan Limits by County: What You Can Borrow Where You Live

FHA loan limits vary by county and change every year based on local home prices

The FHA loan limit is the maximum amount you can borrow on an FHA mortgage in your county. It is not the same everywhere. A county where homes cost more has a higher limit than a county where homes cost less. The Federal Housing Administration sets these limits each year in October, and they take effect January 1.

Your county's limit depends on the median home price there. The FHA calculates it as a percentage of that median — usually around 150 percent for a single-family home. If the median home price in your county is $300,000, the FHA limit might be around $450,000. If you live in a county where the median is $150,000, your limit might be around $225,000.

You need to know your county's specific limit before you start house hunting, because it determines the maximum you can borrow. If you want to buy a home that costs more than the limit, you will need a larger down payment or a conventional loan instead.

Key Takeaways

• FHA loan limits are set by county and based on the median home price in that area, with limits typically around 150 percent of the median.
• Limits change every year on January 1, so the amount you could borrow last year may be different this year.
• You can find your county's current limit on the HUD website by entering your state and county, or by asking your lender.
• If a home costs more than your county's limit, you can still buy it with an FHA loan if you put down more money yourself.
• High-cost counties in California, New York, and the Northeast have much higher limits than rural or lower-cost areas.

How to find your county's FHA loan limit

The U.S. Department of Housing and Urban Development (HUD) publishes FHA loan limits on its website at hud.gov. Go to the FHA Mortgage Limits page and select your state. Then select your county from the dropdown list. The page will show you the current limit for a single-family home, a two-family home, a three-family home, and a four-family home.

You can also call your mortgage lender and ask them directly. They have access to the current limits and can tell you what you can borrow in your county. This is often faster than looking it up yourself, especially if you are not sure which county you are buying in or if you are looking at homes near a county line.

If you are buying a home in a county that was recently affected by a disaster, the FHA may have temporarily raised the limit for that area. Check the HUD website or ask your lender whether your county has a temporary increase in place.

What happens if the home costs more than the limit

If you want to buy a home that costs more than your county's FHA limit, you have two main options. The first is to put down more money yourself. An FHA loan requires a minimum down payment of 3.5 percent, but you can put down more. If the home costs $500,000 and your limit is $450,000, you could put down $50,000 and borrow $450,000 with the FHA loan.

The second option is to use a conventional loan instead of an FHA loan. Conventional loans do not have county-based limits — they are limited by the size of the loan itself and your income and credit, not by geography. However, conventional loans typically require a larger down payment (usually 5 to 20 percent) and a higher credit score than FHA loans.

Some lenders offer FHA loans with higher limits in certain situations. If you are buying in a rural area or a county designated as underserved, you may be able to borrow more. Ask your lender whether you may have access to for any exceptions or higher-limit programs.

How FHA limits differ between counties

Counties with high median home prices have much higher FHA limits. In San Francisco County, California, the limit for a single-family home is significantly higher than in rural counties in other states. New York County (Manhattan), King County (Seattle), and counties in the Boston area also have very high limits because homes there are expensive.

Rural and lower-cost counties have lower limits. A county in rural Kansas, Mississippi, or West Virginia will have a much lower limit than a county in a major metropolitan area. This reflects the actual cost of homes in those places.

The FHA also sets a national floor limit — a minimum that applies even in the lowest-cost counties. This means that even in the cheapest county in the country, you can still borrow at least a certain amount. This floor changes every year along with all other limits.

When FHA limits change and how to stay informed

The FHA announces new loan limits in October for the following year. The new limits take effect on January 1. If you are planning to buy a home in the fall, check whether the new limits will affect your county. A higher limit in January might mean you can borrow more than you could in December.

You can sign up for HUD email updates on the FHA website to receive notifications when limits change. Your mortgage lender will also tell you about limit changes that affect your area. If you are in the middle of getting a loan approved, ask your lender to confirm that the limit will not change before your loan closes.

Limits can also change mid-year if Congress passes legislation or if the FHA adjusts them for specific counties. This is less common, but it happens. Check the HUD website before you make an offer on a home to make sure you have the current limit for your county.

FHA limits for multi-unit properties

The FHA sets different limits for homes with more than one unit. A two-family home (duplex) has a higher limit than a single-family home in the same county. A three-family home has an even higher limit, and a four-family home has the highest limit. This is because multi-unit properties are more expensive to build and buy.

If you are buying a duplex, triplex, or fourplex, make sure your lender is using the correct limit for that property type. Some borrowers mistakenly think they can only borrow the single-family limit, when they could actually borrow more. Ask your lender to confirm the limit for the specific number of units in the property you are buying.

Frequently Asked Questions

Can I borrow more than the FHA limit if I have a large down payment?

No. The FHA limit is a hard cap on how much you can borrow with an FHA loan, regardless of your down payment. If you want to borrow more, you will need a conventional loan or another type of mortgage. You can put down more money to buy a home that costs more than the limit, but you cannot borrow more than the limit itself.

Do FHA limits apply to refinancing?

Yes. If you are refinancing an FHA loan, the new loan amount cannot exceed your county's FHA limit. However, if you already have an FHA loan for more than the current limit, you can usually refinance that loan even though a new borrower could not borrow that amount today. Ask your lender about your specific situation.

What if I am buying a home right on the county line?

The limit that applies is the one for the county where the home is located, not where you live or work. If the home is in County A but you live in County B, you use County A's limit. Make sure you and your lender confirm which county the property is actually in before you apply for the loan.

Do FHA limits change if I lock in my interest rate?

No. Locking in your interest rate does not lock in the FHA limit. The limit that applies is the one in effect when you close the loan. If the limit changes between now and your closing date, the new limit applies. However, if the limit increases, this is good news for you — it means you could borrow more if you needed to.

Are there any counties with no FHA limit?

No. Every county in the United States has an FHA loan limit. However, some counties have the national floor limit, which is the minimum. These are typically rural or very low-cost areas where the calculated limit would be lower than the floor, so the floor applies instead.