FHA Loan Limits: How much can you borrow?

FHA loan limits are the most the Federal Housing Administration will insure on a home loan, and they change by county and by the number of units. For a one-unit home, the limit is $541,287 in most counties and up to $1,249,125 in high-cost areas.

Your county decides how much you can borrow, not just your income. A home that fits the limit in one county may be too expensive for an FHA loan in the next.

This guide covers the limits for 1–4 unit homes, the exact math to find your maximum, and how FHA limits compare with conventional and VA. You’ll also see what FHA mortgage insurance costs. If you’re still weighing programs, start with the FHA home loan overview.

What are FHA loan limits?

FHA loan limits are the highest base loan amounts HUD allows for FHA-insured mortgages. They are set by county, by property size, and they reset every year.

The limit applies to the county where the home is, not where you live now. It caps the loan, not the price. If your loan would be above the limit, FHA cannot insure it.

Why does this matter? A loan limit tells you whether FHA can work for the homes you’re touring. It also decides if you should look at conventional or VA instead.

What are the FHA loan limits for a single-family home?

For one-unit homes, the FHA floor is $541,287 and the ceiling is $1,249,125. Most counties fall at the floor. Higher-cost counties land between the floor and the ceiling.

Here is how to read those two numbers:

• Floor: the limit in lower-cost areas.
• Ceiling: the most FHA allows in the highest-cost areas of the lower 48 states.
• Everything in between: counties where home prices are high enough to move the limit up.

Alaska, Hawaii, Guam, and the U.S. Virgin Islands have separate, higher limits. To see your county’s number, use HUD’s FHA loan limit lookup tool on hud.gov. Always check the exact limit before you make an offer.

What are the FHA multi-family loan limits?

FHA lets you buy a home with 2, 3, or 4 units if you live in one of them. Limits rise with each unit and still vary by county.

Property size	Floor (most counties)	Ceiling (high-cost areas)
1 unit	$541,287	$1,249,125
2 units	$693,050	$1,599,375
3 units	$837,700	$1,933,200
4 units	$1,041,125	$2,402,625

Rules that come with multi-unit FHA loans:

• You must live in one unit as your primary home. Plan to move in within about 60 days and stay at least a year.
• Rent from the other units can help you qualify, but lenders count only part of it.
• 3–4 unit homes must pass the FHA self-sufficiency test. The property’s net rental income has to cover its monthly payment.

Example: On a $650,000 duplex with 3.5% down, your base loan is $627,250. That fits under the 2-unit floor of $693,050. Your down payment would be $22,750.

Buying purely to rent it out? FHA won’t work. Look at a rental property loan or a DSCR loan instead.

How do you calculate FHA loan limits?

HUD sets each county’s limit at 115% of the local median home price, then keeps it between the floor and the ceiling. You then divide that limit by 0.965 to find the most expensive home you can buy with 3.5% down.

How does HUD set the limit for your county?

The formula is simple: county median home price × 115%, but never below the floor or above the ceiling.

The floor is 65% of the national conforming loan limit baseline ($832,750 × 65%). The ceiling is 150% of that baseline ($832,750 × 150% = $1,249,125). Here are three sample counties with made-up medians:

County median price	× 115%	FHA limit
$350,000	$402,500	$541,287 (below floor, so floor applies)
$600,000	$690,000	$690,000 (between floor and ceiling)
$1,200,000	$1,380,000	$1,249,125 (above ceiling, so ceiling applies)

HUD uses its own median price data and rounding, so your real county number may differ. Use HUD’s lookup for the official limit.

How do you find the most you can borrow with FHA?

Divide the county limit by 0.965. That gives the highest purchase price you can reach with a 3.5% down payment.

Why 0.965? With 3.5% down, your base loan is 96.5% of the price.

• At the floor ($541,287): max price is about $560,919, with about $19,632 down.
• At the ceiling ($1,249,125): max price is about $1,294,430, with about $45,305 down.

One more detail. The limit applies to your base loan. The upfront mortgage insurance premium can be financed on top of it, which lifts your final loan above the limit. At the floor, that means a base loan of $541,287 plus a $9,473 upfront premium, for a final loan of about $550,760.

Want to see what fits your budget? Try the home affordability calculator.

How much is FHA mortgage insurance?

FHA charges 1.75% of the base loan upfront. Most 30-year loans also pay an annual premium of 0.50% to 0.55%, split into monthly payments.

The annual rate depends on three things: your base loan size, your loan-to-value, and your loan term. Here are the rates for 30-year loans:

Base loan amount	Loan-to-value	Annual MIP	How long
$726,200 or less	90% or less	0.50%	11 years
$726,200 or less	Over 90% to 95%	0.50%	Life of loan
$726,200 or less	Over 95%	0.55%	Life of loan
Over $726,200	90% or less	0.70%	11 years
Over $726,200	Over 90% to 95%	0.70%	Life of loan
Over $726,200	Over 95%	0.75%	Life of loan

Monthly MIP is about the final loan amount × 0.55% ÷ 12. The premium is recalculated each year as your balance drops.

For how FHA mortgage insurance compares with conventional PMI, see our FHA vs conventional loan guide.

FHA loan limit vs conventional loan limit: what’s the difference?

The conventional loan limit is higher in most counties: $832,750 for a one-unit home, compared with $541,287 for FHA. In high-cost counties, both reach the same $1,249,125 ceiling.

Both limits start from the same FHFA baseline. FHA’s floor is simply 65% of it, while the conventional baseline is 100%. That is why the gap is biggest in lower-cost counties and disappears in the most expensive ones.

Here’s what that looks like. For example, you want a $600,000 home in a lower-cost county. With 3.5% down, your FHA base loan would be $579,000, which is above the $541,287 limit. FHA is out unless you put at least $58,713 down (about 9.8%).

A conventional loan with 5% down gives you a $570,000 loan, which fits easily. Above the conventional limit, you’d look at a jumbo loan.

FHA loan limit vs VA loan limit: what’s the difference?

FHA always has a loan limit. VA has no VA-imposed limit for veterans with full entitlement, and it only uses county limits when your entitlement is partial.

Since 2020, borrowers with full entitlement can use a VA home loan with no VA-set cap. The lender and the appraiser still decide how much you can actually borrow.

Partial entitlement works differently. If you already used part of your benefit, your remaining entitlement is 25% of the county loan limit minus what you’ve used. In a county with the $832,750 limit, that starts at $208,187.50.

What can you do if your price is above the FHA loan limit?

You have four main options: raise your down payment, switch to a conventional or jumbo loan, use VA if you’re eligible, or look at homes in a county with a higher limit.

• Bigger down payment: Pay the gap between the price and the limit. This can still be cheaper than switching programs.
• Conventional or jumbo: Higher limits, with PMI if you’re under 20% down.
• VA home loan: Works for eligible veterans and service members, often with no down payment.
• A different county: Limits follow the property’s location, so a nearby county may have a higher limit.

Ask a loan officer to run each option on your real numbers before you choose. For credit and debt rules, see FHA loan requirements.

What should you do next?

• Confirm the county of the home you want, not your current county.
• Look up that county’s FHA limit for the number of units.
• Divide the limit by 0.965 to find your top price at 3.5% down.
• Add the 1.75% upfront premium and the monthly MIP to your budget.
• If your price is close to the limit, compare conventional and VA quotes.
• For a 2–4 unit home, confirm you will live in one unit and check the self-sufficiency rule.
• Ask the lender about its own overlays on loan amount and credit.
• Get preapproved before you make offers.

Conclusion

Check your county limit first, then compare FHA, conventional, and VA on the same day. The right loan fits your price, your cash, and how long you’ll keep the home.

FHA works best when your loan sits comfortably under the limit, and you want a low down payment. When you are near or over it, a bigger down payment, a conventional loan, or VA can change the picture fast. In a low-cost county, a few thousand dollars in price can decide which programs are open to you.

Ready to see what you can borrow? Talk to a loan officer or start your mortgage application.