If you plan to buy a home in 2025, understanding FHA loan limits is crucial. The Federal Housing Administration (FHA) backs these loans, offering flexible qualification requirements, lower credit score thresholds, and smaller down payments. However, FHA loans have borrowing limits based on location. Knowing these limits can help you determine if this financing option suits your home purchase.
FHA loan limits set the maximum amount borrowers can finance based on location and property size. These limits change annually to reflect shifts in housing prices.
For 2025, the FHA limit for a single-family home in most areas is $524,255. In high-cost regions, the limit increases to $1,209,750. Certain locations, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands, have even higher limits due to elevated construction costs. In these areas, the cap reaches $1,814,625 for a single-unit property.
2025 FHA Loan Limits by Property Type
| Number of Units | Loan Limit (Most Areas) | Loan Limit (High-Cost Areas) | Loan Limit (Alaska & 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 Are FHA Limits Determined?
Several factors influence FHA loan limits, including:
- Conforming Loan Limits – FHA bases its limits on a percentage of conforming loan limits set by Fannie Mae and Freddie Mac. In 2025, the conforming loan limit is $806,500 for a single-family home in most areas, while high-cost markets have a $1,209,750 limit.
- Median Home Prices – FHA loan limits equal 115% of a county’s median home price. If home values exceed this threshold, the limit increases accordingly.
- National Floor and Ceiling– The FHA floor equals 65% of the conforming loan limit, while the ceiling reaches150%of that limit.
FHA Loan Requirements
To qualify for an FHA loan, borrowers must meet these requirements:
- Credit Score – A minimum of 580 qualifies for a 3.5% down payment. Scores between 500-579 require 10% down.
- Debt-to-Income (DTI) Ratio – Typically, DTI should not exceed 43%, though higher credit scores may allow exceptions.
- Primary Residence – FHA loans apply only to primary residences, not investment properties or vacation homes.
- Income Verification – Lenders require proof of stable income through pay stubs, tax returns, or bank statements.
- FHA-Approved Appraisal – The home must pass an FHA appraisal to ensure it meets safety and structural standards.
Frequently Asked Questions
Will FHA Limits Increase in 2026?
Loan limits undergo an annual review, adjusting based on home prices and conforming loan limits. From 2024 to 2025, limits increased by 5.21%, so future changes will depend on market trends.
How Do I Find My County’s Loan Limit?
The U.S. Department of Housing and Urban Development (HUD) provides an FHA loan limit lookup tool. You can access it on the official HUD website to find limits based on your location.
Can I Borrow More Than The Loan Limit?
If a home’s price exceeds the loan limits, you must cover the difference out of pocket or explore other financing options, such as a conventional loan.
How Do I Apply for an FHA Loan?
To apply, follow these steps:
- Choose an FHA-approved lender
- Gather financial documents (pay stubs, tax returns, bank statements)
- Submit an application and undergo the pre-approval process
- Receive a loan estimate outlining your mortgage terms
Get Started Today!
FHA loans offer a great alternative for homebuyers who may not qualify for conventional financing due to credit or income limitations. Understanding the loan limits helps you plan your home purchase and decide if this mortgage type fits your needs.
If you’re considering an FHA loan, check your local limits and contact us today to explore your options!
Get My Custom Rate Quote
No SSN required. Zero impact to credit. Your Information is never sold.