The maximum FHA loan amount is determined based on the county or metropolitan area in which the property is located. The Federal Housing Administration (FHA) sets these limits to ensure that FHA loans are available for affordable housing across various regions. These limits are updated annually and vary based on local housing costs.
FHA Loan Limits for 2024
As of 2024, FHA loan limits are categorized into three tiers:
- Low-Cost Areas
- High-Cost Areas
- Special Exceptions
1. Low-Cost Areas
For most areas, the FHA loan limit for a single-family home is $331,760. This is the baseline limit for areas where the cost of housing is relatively lower.
2. High-Cost Areas
In areas where housing costs are higher, the FHA loan limits can be significantly higher. For high-cost areas, the loan limit can go up to $1,046,500 for a single-family home. This applies to regions such as certain parts of California, New York City, and other metropolitan areas with high housing prices.
3. Special Exceptions
- Hawaii, Alaska, Guam, and the U.S. Virgin Islands: These territories often have higher limits due to the elevated cost of living. For example, in these areas, the maximum FHA loan limit for a single-family home can be up to $1,258,850.
- Four-Unit Properties: FHA loan limits increase for multi-family properties. For a four-unit property in high-cost areas, the limit can reach up to $2,538,500.
Loan Limits by Property Type
FHA loan limits also vary by property type:
- Single-Family Homes: The baseline limit applies, with variations for high-cost areas.
- Two-Family Homes: Limits are higher to accommodate the increased cost of multi-family properties.
- Three-Family Homes: Further increased limits for three-unit properties.
- Four-Family Homes: The highest limits apply to four-unit properties.
Checking Local FHA Loan Limits
To find the specific FHA loan limits for a particular area or county, you can use the FHA’s online loan limit lookup tool, which provides the most current information based on the location of the property.
Website: FHA Loan Limits Lookup
Conclusion
The FHA loan limit varies widely depending on the location and type of property. Understanding these limits helps prospective homebuyers gauge their purchasing power and plan accordingly. For the most accurate and up-to-date information, especially if you are considering buying or refinancing a property, check the FHA’s official website or consult with a local FHA-approved lender.
