What Are FHA Loan Limits?

FHA loan limits are limitations set by the Federal Housing Administration on how much a homeowner can borrow.

How Much Can I Borrow?

FHA loan limits are tied into the housing price index, which is set by the Federal Housing Finance Agency. The amount a homeowner can borrow against the value of their current home, or for a home that a homebuyer would like to purchase varies by region and county and can be found by state on the FHA loan website.

Knowing FHA Loan Limits

These limits apply to both first-time homebuyers and FHA-insured reverse mortgage products. It is important to know the FHA loan limits in your area while shopping for your new home. Knowing how much you have been approved for will save a lot of time while you search for housing in your price range.

Counties in each state determine the minimum and maximum amount of lending by looking at the highest priced home in the area. Knowing this, as well as the rules and requirements for specific FHA loans and their limits, will keep the application process from slowing down, and keep you from applying for the wrong FHA loan.