FHA loans are mortgages that are insured by the Federal Housing Administration. These loans require lower credit scores and smaller down payments, making them a popular choice for first-time homebuyers — in fact, more than 478,000 first-time buyers opted for an FHA loan last year. However, if you’re considering using this type of loan, make sure you understand the financing limits for your area. The FHA only insures mortgages on homes that cost up to a certain dollar amount, which limits what you can finance with this type of home loan.
In 2024, FHA loan limits range from $498,257 in low-cost areas to up to $1,149,825 in high-cost areas for single-unit homes. Here’s what to know about the FHA’s 2024 loan limits and how they’re set.
The FHA is required to update its loan limits each year, and the limit changes based on home prices at the local level. You can borrow up to 115% of the median home price in your metro area or county, subject to a national minimum and maximum.
In 2024, the national FHA loan floor is $498,257 and the ceiling is $1,149,825. In Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the limit increases to $1,724,725.
If 115% of the median house price in a given county falls below the FHA loan floor, the agency will still insure mortgages up to $498,257 in that area. This offers some flexibility when you live in an area with lower home values. The FHA also adjusts the loan limit upward if the median home price exceeds 115% of the floor. For example, the median home price in Fulton County, Georgia, meets this qualification — so the FHA raised the maximum loan limit to $649,750 for 2024.
The FHA calculates the floor and ceiling based on the national conventional conforming loan limit, which is $766,550 in 2024. The FHA loan floor is 65% of the national conforming loan limit, and the ceiling is 150% of that limit.
You may also use an FHA loan to buy a property with two, three, or four units. The loan limit increases with the size of the property. Here are the loan floors and ceilings based on property size:
Property size | Low-cost area | High-cost area | Alaska, Hawaii, Guam, and the U.S. Virgin Islands |
|---|---|---|---|
One unit | $498,257 | $1,149,825 | $1,724,725 |
Two units | $637,950 | $1,472,250 | $2,208,375 |
Three units | $771,125 | $1,779,525 | $2,669,275 |
Four units | $958,350 | $2,211,600 | $3,317,400 |
Loan limits usually increase each year to keep pace with rising home prices across the U.S. In 2024, limits increased in 3,138 counties, while 96 counties were unchanged. The lowest FHA loan limit rose by $26,227 over the previous year, while the highest limit increased by $60,525. In Hawaii, Guam, Alaska, and the U.S. Virgin Islands, the limit went up by $90,775.
You can use the Department of Housing and Urban Development’s Mortgage Limits search tool to find loan limits in your area. You can narrow your search by state or county, and you can also see the limits for one- to four-unit homes in each region.
Note:
Only 67 counties across the U.S. qualify for the highest loan limit. Most of the other counties fall between the FHA loan floor and ceiling.
The Federal Housing Administration only insures mortgages on homes up to a certain amount, which varies in each county. This limits your borrowing power since you can only borrow up to the limit in your area.
The table below contains FHA loan limits for sample counties across the U.S. for one-unit properties, compared to the previous year.
County and state | 2024 loan limit | Change from previous year |
|---|---|---|
Kings County, New | $1,149,825 | +$60,525 |
Fulton County, | $649,750 | +$57,500 |
Duval County, | $564,650 | +$37,950 |
Billings County, North | $508,300 | +$36,270 |
Baltimore County, | $667,000 | +$34,500 |
Dallas County, | $563,500 | +$32,200 |
Montgomery County, | $498,257 | +$26,227 |
Honolulu County, | $779,700 | +$9,200 |
Napa County, | $1,017,750 | +$0 |
Morgan County, | $744,050 | +$0 |
What are the pros and cons of FHA loans?
FHA loans help you finance a home purchase when you have a lower credit score or a smaller down payment. But you’re limited to borrowing only up to a certain dollar amount based on the county. Before taking out an FHA loan, check out the pros and cons of following these loan limits:
Pros
- Provides access to homeownership for people with low credit scores and small down payments
- In low-cost areas, you can still borrow up to the floor limit
- Adjusts each year to keep pace with changes in median home prices
Cons
- Your purchasing power is limited, especially in high-cost areas
- Variations in each county may affect your budget
- Lower than conventional conforming loan limits
FHA loan limits may change each year, so here are some tips on how to prepare for those updates:
- Check loan limits in your area: The maximum amount you can borrow may vary from one county to the next. You can use the agency’s search tool to find limits in your area.
- Consider how much you need to borrow: You don’t have to spend up to the loan limit — in fact, you may not qualify for the maximum amount. The lender you choose will look at your employment status, debt-to-income ratio, and other factors to determine your potential loan size.
- Review qualification criteria: When applying, you’ll need to meet FHA mortgage requirements, which call for a credit score of at least 580 if you’re making a down payment of 3.5% or higher. If you have a credit score between 500 and 579, you’ll need a 10% down payment.
- Look for assistance: You may qualify to receive down payment assistance to cover some of your upfront costs. Depending on the program, the help may come in the form of cash grants, tax incentives, and special loan programs.
The maximum amount you can borrow with an FHA loan depends on the county where the property is located and the type of home it is. In 2024, you can borrow up to $498,257 in many parts of the U.S. for a one-unit property. The limit rises to $1,149,825 in some high-cost counties and increases to $1,724,725 in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.
The FHA reviews loan limits each year and updates them as needed. The agency usually announces loan limits for the upcoming year in November.
The FHA looks at the median home price in each county. If a county’s median home price exceeds 115% of the FHA loan limit floor, the limit is adjusted upward.
If the property you want to buy exceeds the FHA loan limit, you’ll need to pay the difference as part of your down payment. For instance, let’s say you want to buy a home for $700,000 in Fulton County, Georgia, where the FHA loan limit is $649,750. You’ll need to make a down payment of at least $50,250 so the loan amount falls within the FHA-approved limit.
Meet the contributor:Kim Porter
Kim Porter is an expert in credit, mortgages, student loans, and debt management. She has been featured in U.S. News & World Report, Reviewed.com, Bankrate, Credit Karma, and more.
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