FHA Loan Limits 2026

Consumers continue to ask us, “What is the limit on FHA loans?” ​HUD just announced higher maximum FHA loan amounts and increased loan limits for 2026 increasing purchase power for home buyers in the U.S. According to Zillow, home prices remain near record highs and loan limits continue to keep pace. FHA 2026 conforming loan limits are almost as high as jumbo loans, and this could be the policy for the foreseeable future. After all, home prices don’t seem to be anywhere close to falling soon.

 2026 FHA Loan Limits Updated

The Trump Administration and HUD announced the new FHA loan limits for 2026, and HUD kept the maximum loan amounts high. Last year we saw the biggest one-year jump in US history. The Federal Housing Administration released the maximum 2026 FHA loan amounts for refinance and home purchase loans.

There was a significant increase that raised the limits of FHA loans by $148,000. And in more expensive counties and states, the loan limit for FHA mortgages is nearing $1 million. 2026 FHA loan limits have great many opportunities for new home buyers to compete in a competitive housing market. In the calendar year 2026, the FHA’s minimum and maximum nationwide limits for a one-unit property under forward mortgages are $498,257 and $1,149,825, respectively.

The new forward FHA  loan limits in the table below are effective for FHA case numbers assigned on or after January 1, 2026.

1. FHA loan limits for the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands are adjusted by FHA to account for higher costs of construction.

HUD Raises FHA Loan Limits for 2026

WASHINGTON, D.C. — The U.S. Department of Housing and Urban Development (HUD) has announced increased loan limits for Federal Housing Administration (FHA)-insured mortgages and Home Equity Conversion Mortgages (HECM) for calendar year 2026, reflecting continued growth in home values across the nation. The adjustments, effective for case numbers assigned on or after January 1, 2026, aim to maintain access to affordable financing for first-time homebuyers and moderate-income families in both low- and high-cost markets.

For FHA forward mortgages, the new “floor” limit for one-unit properties rises to $541,287, up from $510,400 in 2025—a 6.1% increase. The “ceiling” for high-cost areas jumps to $1,249,125, from $1,209,750, marking a 3.3% hike. Multi-unit properties see similar boosts: two-unit floors climb to $693,050 (ceiling $1,599,375), three-unit to $837,700 ($1,933,200), and four-unit to $1,041,125 ($2,402,625). These limits vary by county and Metropolitan Statistical Area (MSA), with nearly all U.S. counties experiencing an uptick due to recalibrations based on local home sales data.

The HECM program, FHA’s reverse mortgage offering for seniors aged 62+, sees its maximum claim amount standardized at $1,249,125 across all areas—including special exceptions like Alaska and Hawaii—up from $1,209,750. This uniform limit simplifies access for older homeowners seeking to tap equity for retirement needs.

HUD attributes the changes to sustained home price appreciation, drawing from Federal Housing Finance Agency (FHFA) data on conforming loan limits. “These adjustments ensure FHA financing remains a viable option in evolving markets,” said FHA Commissioner Julia Gordon in the announcement. The boosts come as housing affordability pressures persist, with median prices edging up 2.5% year-over-year to $420,000 and 30-year fixed rates at 6%.

Industry experts welcome the move. “Higher limits preserve credit access for underserved borrowers, particularly in high-cost metros where entry-level homes exceed $500,000,” noted David Stevens, former FHA Commissioner, in a statement to National Mortgage Professional. The increases could expand eligibility for an additional 50,000-75,000 buyers, especially first-timers who rely on FHA’s low 3.5% down payment and flexible credit guidelines (580+ FICO).

However, critics point to potential risks: Elevated limits in volatile markets could amplify defaults if prices soften amid economic slowdowns. HUD counters that robust underwriting—DTI caps at 43% and mandatory counseling for HECM—mitigates this.

Borrowers should consult FHA’s online loan limit lookup tool for county-specific figures. As the housing sector eyes a balanced 2026 with 4% inventory growth, these changes signal HUD’s commitment to affordability in a post-pandemic recovery.

Who Sets the FHA Maximum Loan Amounts Each Year?

The FHA loan limits for each year are determined by the U.S. Department of Housing and Urban Development (HUD). These maximum loan amounts are set based on various factors, including the median home prices in a particular area. FHA loan limits are established to ensure that the program remains accessible to a wide range of homebuyers by accommodating varying housing markets throughout the United States.

The FHA maximum loan amount can differ from one county to another, and they are typically updated annually to reflect changes in housing market conditions and trends. These FHA loan limits play a crucial role in the affordability and accessibility of FHA-backed loans for potential homebuyers in different regions.

The 2026 national conforming loan limit for a one-unit property is $766,550. The FHA’s minimum national loan limit floor for 2026, applicable to a one-unit property, is established at $498,257, representing 65% of the national conforming loan limit. This floor is enforced in areas where the floor limit surpasses 115% of the median home price. Regions where the FHA loan limit exceeds this floor are categorized as high-cost areas. In such areas, FHA determines varying loan limits above the floor, taking into account the respective median home prices.

According to the National Housing Act (NHA), FHA is mandated to set the maximum loan limit ceiling for high-cost areas at $1,149,825, equivalent to 150% of the national conforming loan limit. For the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands, FHA adjusts forward mortgage limits to accommodate elevated construction costs.

Find FHA Loans Today with Higher Loan Amounts & Competitive Mortgage Rates

FHA Loan Limit Overview

To be approved for this loan, your mortgage needs to be within the maximum amount that FHA will insure. That is where the term ‘FHA loan limits’ comes from.

In 2026 HUD increased the FHA loan limit in 3,188 counties in the US, and 45 counties will have the same maximum FHA loan amount.

FHA has four pricing tiers for its limits: standard, mid-range, high-cost, and special exception. In low-cost areas, the limit is at $420,680 and $970,800 in high-cost areas.

Note that while the loan limit is higher than ever for FHA loans, it’s still lower than the limit for Fannie and Freddie-backed mortgages. The limit for conventional mortgages is $647,200.

So, if you want a more expensive homes, there are situations where you will need a Fannie or Freddie backed loan instead of an FHA home loan. If you cannot qualify for a conventional loan, you may need to get an FHA mortgage and consider purchasing a less expensive home.

How Does the US Government Set the FHA Loan Limit?

The US government sets the FHA loan limit by reviewing the House Price Index Report. This report looks at average housing prices by each county, compared to prices across the US. This index looks at average price changes in refinancing loans and repeat sales going back more than 40 years.

When sales go up, the Federal Housing Administration increases the loan maximums for the next year so that FHA loans or refinances backed by Fannie Mae and Freddie Mac are competitive and accessible to as many buyers as possible.

FHA Max Loan Amounts for 2026

Most of the United States has a conforming loan limit of $766,550 for 2026 This is an 18% jump from this year and is the biggest increase on record. If you reside in an expensive county, the mortgage limit is higher with a ceiling as high as 150% of the baseline.

For example, expensive counties in California, New Jersey, New York, Hawaii and DC will have loan limits of $970,800. You only need a credit score of 580 and a DTI of less than 43% to be considered for an FHA loan with only 3.5% down.

As you can see, it’s quite easy to qualify for an FHA loan, and that is going to make the loan program very attractive going into 2022!

How FHA Loan Limits Affect Borrowers

Housing price increases have led to higher mortgage limits. But will housing prices continue to rise and will the higher loan limit cause them to go up even more? Many experts think the rising loan limit will cause home prices to go higher, which can be challenging for first-time buyers.

One consideration to note is an FHA loan requires you to live in the house, so the new limits don’t affect most real estate investors. But the higher limit may expand the housing market and increase competition, which could boost prices more.

Note that the FHA mortgage limits are maximums and not everyone will get the maximum loan amount. Also, the loan must be able to be paid back, so lenders need to verify that borrowers have the income to support the payments. They also need to check that home buyers can pay for their other obligations, including auto payments, groceries, and utilities among others.

If a home buyer gets the maximum allowed mortgage, they could wind up house poor and unable to pay for other life expenses.

But there is little doubt that the higher HUD Approved loan limits  give people access to plenty of money to borrow. And interest rates are still low, despite the significant rise in inflation we have seen in 2023.

Borrowing Requirements Still Lenient for FHA Loans

Many financial experts think more Americans than ever will apply for FHA loans in 2026. With loan limits so high and prices rising, more Americans will opt for FHA loans because they are relatively easy to get.

FHA financing does not have as difficult requirements in terms of income, credit score, and debt-to-income ratio. The option of making a low-down payment can make FHA loans more desirable for the first-time buyer.

Typical Requirements for an FHA loan for 2026 include:

• Credit score of 580 for a 3.5% down payment. However, you may qualify for the loan if you have a 500-credit score with a 10% down payment. Check for the current FHA credit score requirements.
• DTI of 43% or less. Some borrowers can qualify with a higher DTI, but you may need more money down.
• Home must be used as your primary residence.

Considerations For FHA Loan

There’s no doubt that FHA loans are an attractive option for home buyers in 2023. But you should remember that you will need to pay higher mortgage insurance with FHA loans. And you also need to make this payment for the entire life of the loan, unless you put down 10%. In that, you can cancel mortgage insurance after year 11.

FHA Streamline Refinance Loan Limits

One advantage of having an FHA loan is you can do a streamline refinance when interest rates drop. This FHA streamline program is a low-doc option that gives you the chance to lower your rate without providing your credit, income, or employment information.

When you do a refinance with the streamline program, the new loan must stay within the loan limits. But you can only use the program on a current FHA loan, so you cannot boost your loan balance over current limits.

Other requirements for the streamline program:

• You need to be making your current payments on time.
• Your FHA loan needs to be at least 180 days old.
• FHA will check that you have a financial benefit with the refinance. This means the rate must drop by at least .5%.

Home Equity Conversion Mortgage Limits for 2026

The HECM maximum claim amount is set to rise, transitioning from $1,089,300 in the calendar year 2023 to $1,149,825. This adjustment takes effect for FHA case numbers assigned on or after January 1, 2026. The increased maximum claim amount applies uniformly to all regions, including the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

The FHA-insured Home Equity Conversion Mortgage (HECM) maximum claim amount is computed at 150% of the Freddie Mac national conforming limit, which stands at $766,550. Notably, the current HECM regulations by FHA maintain a uniform HECM limit irrespective of the location, with no variation based on Metropolitan Statistical Area (MSA) or county.

Are You Interested in an FHA Loan?

With the higher loan limits for 2026, there’s plenty of interest in the FHA loan with bad credit . But how can you ensure you will qualify for this program? Keep the following tips in mind:

• You need to have verifiable income. Most borrowers have W-2s and pay stubs. But you can also qualify with bank statements and a profit and loss statement if you are self-employed.
• It’s important that you can afford the mortgage payment, other debts, and living expenses. The lender will verify that the loan payment isn’t more than 35% of your gross income. Also, you should not have a DTI of more than 48%, which is the sum of your mortgage and other debt payments.
• Save for a down payment. You don’t need 20% down; you can qualify with only 3.5% down, but the more you put down, the lower your payment will be.
• Have credit. You need to have at least two lines of credit to qualify for an FHA loan. In a few cases, an FHA lender may accept on time rent and cell phone payments as proof of credit.
• You generally need to have a credit score of 580 to qualify. But some lenders may allow you to qualify with a lower score. Generally, having a score above 600 will make it easier to get approved.
• Apply for the right type of FHA loan. You can get an FHA mortgage with a fixed or variable rate. Variable rates can run for 3, 5, or 7 years, which then reset to market rates. The variable option can be a good choice if you think you will move in the short or medium term.
• Fixed rate FHA mortgages are the best choice for people who want certainty in their payments over the long term.
• You also should understand the costs of the FHA loan. As noted earlier, you will pay more for mortgage insurance with this loan. However, the interest rate for an FHA loan can be below market rates.

FHA financing is an attractive option for people with lower incomes and credit scores. It’s also appealing because you only need 3.5% down. As the loan limits for these loans are rising in 2026, it’s worth considering.

You should talk to your mortgage lender about the benefits of FHA loans vs. other types of loans. It helps to work with a mortgage broker that can get you approved for a variety of loans.

For people who have had financial or credit issues in the past, FHA mortgage programs can be a great way to move from renting to owning.

FAQ for FHA Loan Limits

What Credit Score Is Needed for FHA Loans in 2026?

In 2026, to qualify for an FHA loan, borrowers typically need a minimum credit score of 580, which allows for a down payment as low as 3.5%. Those with credit scores between 500 and 579 may still be eligible but are required to make a 10% down payment. Lenders may have additional criteria, so it’s advisable to check with your chosen lender for their specific requirements.

What Are the Maximum FHA Loan Amounts Today?

FHA loan limits vary by county and home type — the FHA sets minimum and maximum limits based on local housing costs. In 2026, baseline single-family FHA limits generally start around $541,287 and can go as high as $1,249,125 in high-cost areas. For 2- to 4-unit homes, limits increase significantly. These ceilings reflect 150% of the national conforming loan limit and adjust annually based on home price trends set by HUD. Specific county limits are published each year by HUD and updated for case numbers assigned on or after January 1, 2026. HUD+1

What Are the Maximum FHA Loan Limits for 2026?

For 2026, FHA single-family loan limits range from a floor of about $541,287 up to a ceiling of $1,249,125 in high-cost counties. Higher limits also apply for multi-unit homes: two-unit properties can go up to about $1,599,375, three-units near $1,933,200, and four-unit homes about $2,402,625. These ceilings adjust annually based on housing values and ensure access to FHA financing in more expensive markets.

What Are the FHA California Loan Limits in 2026?

California’s FHA loan limits in 2026 reflect its high-cost housing markets, with ceilings typically up to $1,249,125 for single-family homes in counties like Los Angeles and Orange. Less expensive counties may have lower limits closer to the baseline floor (roughly $541,287), but high-cost metro areas see the upper ceilings. HUD updates these county-by-county limits each year based on home price data to align with local housing costs.

What Are the 2026 San Diego County FHA Loan Limits?

In 2026, San Diego County’s FHA loan limit for a single-family home is approximately $1,104,000, reflecting its high local home values. This higher limit lets more buyers qualify for FHA financing in the county’s competitive market. Loan limits are set by HUD annually and correspond with rising regional home prices.

What Are the 2026 Orange County FHA Loan Limits?

Orange County’s FHA loan limit for 2026 is around $1,249,125 for a single-family home, near the FHA ceiling in high-cost U.S. markets. This elevated limit enables FHA borrowers to purchase more expensive homes while still benefiting from lower down payments and mortgage insurance advantages.

What Are the 2026 Los Angeles County FHA Loan Limits?

In 2026, Los Angeles County’s FHA loan limit for single-family homes is approximately $1,249,125, reflecting its status as a high-cost housing area. This ceiling allows FHA borrowers to access financing for pricier homes while preserving the program’s low-down-payment benefits. Limits for multi-unit properties are higher.

What Are the 2026 Riverside County FHA Loan Limits?

Riverside County’s FHA loan limits in 2026 are generally lower than coastal counties but still elevated from prior years due to rising values. Single-family limits are typically aligned with FHA guidelines for high-cost California counties, often approaching the FHA ceiling in surrounding Southern California markets. Exact figures are published annually by HUD and vary slightly based on local median home prices.

What Are the 2026 FHA Loan Limits in San Francisco?

In 2026, San Francisco County’s FHA loan limit for a one-unit home is $1,249,125 — the maximum high-cost area ceiling. FHA limits vary locally to reflect housing prices and are set annually by HUD. This higher limit helps buyers in expensive markets tap FHA financing with lower down payments and flexible credit requirements. Multi-unit limits (2–4 units) are significantly higher as well.

What Are the Oakland FHA Loan Limits in 2026?

Alameda County (which includes Oakland) has a 2026 FHA one-unit limit of $1,249,125, matching the high-cost maximum for California metro areas. These elevated limits help more buyers access FHA financing in competitive, high-price regions by allowing larger loan amounts while still requiring low down payments and FHA insurance protections.

What Are the 2026 FHA Loan Limits in Ventura?

Ventura County’s 2026 FHA loan limits are about $1,035,000 for a one-unit property, reflecting the local housing market’s costs and falling just below California’s highest ceilings. FHA loan limits adjust annually to align with median home prices, giving buyers in Ventura the ability to finance more expensive homes with low down payment FHA loans.

What Are the Santa Barbara FHA Loan Limits in 2026?

Santa Barbara County’s 2026 FHA loan limit for a single-family home is approximately $941,850. This mid-to-high cost county gets a higher FHA limit than baseline areas, allowing homebuyers to borrow more while still benefiting from FHA’s favorable terms and low down payment requirements.

What Are the 2026 FHA Loan Limits in San Luis Obispo?

In 2026, San Luis Obispo County’s FHA one-unit loan limit is around $1,000,500. This elevated limit reflects local housing costs and enables buyers to access FHA financing for higher-priced homes while taking advantage of FHA’s flexible underwriting and low down payment benefits compared with conventional loans.

Please note that FHA loan limits are subject to change based on housing market fluctuations and policy updates. For the most current information, consult the FHA’s official resources or local housing authorities.

For a comprehensive listing of current FHA loan limits, including areas at the FHA maximum loan amount with ceiling and those falling between the floor and ceiling, please refer to the HUD Loan Limits on the official FHA mortgage limit webpage.

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