FHA Loan Limits for 2025

FHA Loan Limits for 2025

FHA loan limits, published by the Department of Housing and Urban Development (HUD), change annually. They are based on how much housing costs in your area and how many units you plan to purchase with an FHA loan. Here are the limits for 2025 FHA loans.

Source: Department of Housing and Urban Development

How to Find Your Local FHA Loan Limits

You can easily find your local FHA loan limit online with HUD's FHA Mortgage Limits search tool. While there are many optional fields, you can simply pick your state, then hit the send button for a list of all counties in your state.

You can also select your state and then type your county's name in the county field, then hit send. This will take you to a page with the limits for only your county. The results will tell you the median sale price in the county, along with the limits for mortgages for a one-, two-, three- or four-unit property.

Learn more: The Different Types of FHA Loans

How FHA Loan Limits Are Determined

Federal law dictates FHA mortgage maximums, which are updated annually and based on the following two factors.

Location

Limits are set by the median house price in a county or metropolitan statistical area, which is essentially a city and its surrounding areas. Locations are designated as low-cost or high-cost, though certain regions that are exceptionally pricey have even higher limits.

In a low-cost area, the FHA limit is 65% of that year's national limit on conforming loans (the limit used for conventional loans). In a high-cost area, the FHA limit is set at 150% of the national conforming limit. For 2025, the conforming loan limit in most parts of the country is $806,500 for a single-unit property.

There is an exception for FHA loans in four regions that have higher costs of construction; Alaska, Hawaii, Guam and the Virgin Islands are in a special tier with a larger loan ceiling.

Example: Say you want to buy a house in an area designated as low-cost. The largest FHA loan you could qualify for in buying a single-family home is $524,225, or 65% of the 2025 conforming loan limit of $806,500.

Property Type

FHA loans can be used for a single-family home, or a multi-family property with two to four units. Mortgage limits are listed in tiers by one, two, three or four units.

Learn more: FHA vs. Conventional Loans: What's the Difference?

FHA Loan Requirements

FHA loans offer more lenient borrowing standards than conventional loans, but borrowers still must meet certain criteria to qualify.

• Credit score: FHA loans require borrowers to have a minimum credit score of 500. To qualify for the lowest down payment option of 3.5%, your credit score must be 580 or above. You may be eligible if your credit score is between 500 and 579, but a down payment of 10% is required.
• Debt-to-income ratio (DTI): This figure, which shows how much of your monthly income goes toward debt payments, helps lenders assess your risk as a borrower. To get an FHA loan, your DTI typically can't be higher than 43%.
• Down payment: The lowest down payment you're allowed with an FHA loan is 3.5% of the home's purchase price.
• Foreclosure history: You cannot have had a foreclosure within the last three years in order to qualify for an FHA loan.
• Primary residence: You can only buy a home with an FHA loan if you intend to use it as your primary residence and plan to move in within 60 days of closing.

Be aware that FHA loans require mortgage insurance—both an upfront premium and an ongoing annual premium paid monthly to reduce risk for the lender. You may be able to cancel mortgage insurance after 11 years if you put down 10% when you bought the house; otherwise, you'll typically have to refinance into a different mortgage to get rid of this payment.

How to Get an FHA Loan

If you plan to apply for an FHA loan, these are the general steps you'll need to take:

• Check eligibility. Review borrowing criteria to make sure you're eligible so you don't waste time applying if you're not.
• Look for a lender. You must use an FHA-approved lender, though it's possible your preferred financial institution already is one. If not, HUD's lender list search can help you find one near you.
• Prepare your documents. As with all other mortgage types, FHA lenders will expect you to have an array of documents ready; ask in advance what they require. It will likely include proof of personal identification, income, debts and assets.
• Submit applications to multiple lenders. While you can submit an application in just one place, it's ideal to seek preapproval with a few. Since lenders set their own interest rates, you can save money by getting preapproved by multiple lenders and comparing rates and terms.
• Select and close on your loan. If you are approved by one or more lenders, you'll receive a preapproval letter with the loan terms, including how much you can borrow. Then it's time to select your loan, find your dream home and complete the closing process.

While the full process is a bit more complex, an FHA-approved lender or a savvy real estate agent can help you navigate it.

Learn more: Is an FHA Loan Right for You?

Find Out if Your Credit is FHA-Ready

While FHA loans allow for lower credit scores than conventional loans, there are still minimums—especially if you want the coveted 3.5% down payment.

Before you apply for an FHA loan, check your FICO^® Score^Θ for free from Experian to see where you currently stand and so you know how much you'll need saved up for a down payment.