2024 FHA Loan Limits
The FHA loan program is a valuable mortgage option for many homebuyers. It allows for lower credit scores than most other loans and a down payment as low as 3.5% in certain situations.
Still, FHA loans have limits on the loan size that you can borrow — and if you need a higher-priced home or are buying in a more expensive market — you might not fall under them.
Fortunately, the FHA’s loan limits change annually, and in 2024, they actually increased over the previous year.
FHA Max Loan Amounts by Area and Property Type
Limits on FHA loan amounts depend on two main factors: location and property size.
Properties with two, three, or four units in them (the FHA does not allow more than that) are known as FHA multifamily homes and have higher loan limits than single-family homes.
The same goes for properties in higher-cost housing markets. If home prices are particularly high in your area, you’ll likely have a higher loan limit than someone buying a house in a more affordable part of the country. Buyers in Alaska, Hawaii, Guam, and the U.S. Virgin Islands have the highest FHA loan limits. These are considered “special exception areas.”
| Number of units in the property | FHA loan limit in most areas | FHA loan limit in high-cost markets | FHA loan limit in Alaska, Hawaii, Guam, and the U.S. Virgin Islands |
|---|---|---|---|
| One | $498,257 | $1,149,825 | $1,724,725 |
| Two | $637,950 | $1,472,250 | $2,208,375 |
| Three | $771,125 | $1,779,525 | $2,669,275 |
| Four | $958,350 | $2,211,600 | $3,317,400 |
HECM Loan Limits
The FHA also manages the Home Equity Conversion Mortgage program (HECM). These reverse mortgages allow seniors to tap their home equity, and they have limits that differ from traditional FHA loans.
Like FHA loan limits, HECM loan limits change annually. The current HECM limit for 2024 is $1,149,825 in all markets, states, and territories.
How FHA Loan Limits Work
The FHA bases its loan limits on conforming loan limits set by the Federal Housing Finance Agency each year.
To calculate the exact FHA county loan limits for an area, the FHA takes a percentage of its annual conforming loan limit — currently, $766,550 for a one-unit property. Percentages range from 65% to 225%, depending on market type.
The calculations for each market type are broken down below:
| Market Type | Percentage of conforming loan limit |
|---|---|
| Most areas | 65% |
| High-cost areas | 150% |
| Special exception areas | 225% |
For example, to calculate the basic limit for a one-unit property in most areas, FHA would multiply the 2024 conforming loan limit of $766,550 by 0.65. That gives the majority of single-family homebuyers an FHA loan limit of $498,257. For higher-cost markets, you’d multiply by 1.50, giving you $1,149,250, and for special exceptions, it’d be 2.25 — or $1,724,737.
FHA Jumbo Loans
FHA jumbo loans are mortgages that are higher than the bottom limit of FHA loans for an area (sometimes called the “floor”) but below the FHA’s high-cost area limit (the “ceiling”). In 2024, that means FHA jumbo loan limits fall somewhere between $498,258 and $1,149,825.
These types of loans can be helpful if negotiations push your offer up further than expected or if you just need a little more cash to buy a home in your desired neighborhood.
Keep in mind, though, that you’ll still need to meet the standard FHA loan requirements for down payment, credit score, and debt-to-income ratio, and you may need more than one appraisal to get approved. FHA jumbo loans also aren’t offered by every lender, so you might need to shop around a bit to find one.
What To Do If You Need More Than the FHA Loan Limit
Pursuing an FHA jumbo loan is one option if the FHA loan limit for your area just isn’t enough. But there are other options, too.
If the FHA loan limit is too small to work for your buying or
refinancing goals, you can:
-
Increase your down payment: By putting more down,
you’ll need to borrow less from your lender. This could reduce your
loan amount enough to fall below the FHA loan limit.
-
Opt for a conventional loan: These have higher loan
limits than FHA loans. The conventional loan limit is currently
$766,000 for a single-home property in most areas. Traditional jumbo
loans can also be an option.
-
Seek out a house under the FHA loan limit: Look
around for other neighborhoods and areas you might be willing to buy
in and see if you can find more affordable prices. You can also opt
for a smaller home, as this could reduce the price you pay as well.
- Use a piggyback loan: A piggyback loan is when you take out two loans at the same time. It’s a strategy that can actually help you save money by covering your down payment enough so that your mortgage balance falls under the FHA’s limits.
There are lots of mortgage loan options out there, so if an FHA loan doesn’t fit the bill, talk to a loan specialist. They can help you weigh your options and pick the best loan program for your needs.
FHA Loan Limit FAQs
What is the maximum FHA loan limit?
The maximum FHA loan limits depend on your location and how many units are on your property. The 2024 FHA loan limit ranges from $498,257 to $1,724,737 for a one-unit property.
How often do FHA loan limits change?
FHA loan limits change annually and are adjusted based on median home prices. The U.S. Department of Housing and Urban Development (HUD) usually announces the following year's FHA loan limits in November.
Will the FHA loan limit increase in 2025?
It is highly likely that FHA loan limits will increase in 2025 due to current market conditions, including historically high home prices and HUD's trend of annual limit increases since the program's inception.
How are FHA loan limits calculated?
FHA loan limits are based on the conforming loan limit set by the Federal Housing Finance Agency. In most areas, the FHA loan limit is 65% of the conforming loan limit, currently at $766,550 for 2024.
Are you eligible for a FHA home loan?
Talk to one of our loan experts to see if you qualify.
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