How FHA loan limits work
FHA loans are insured by the Federal Housing Administration and allow down payments as low as 3.5% with qualifying credit. Each county has a maximum FHA loan amount, set every year by HUD based on local home prices. The limit sits between a national floor for lower-cost areas and a ceiling for high-cost areas.
What the limit means for your budget
The limit applies to the base loan amount. At the 3.5% minimum down payment, the highest price you can buy with the maximum FHA loan is the limit divided by 0.965. Above that price, you can still use FHA if you put more money down so the loan stays within the limit. The upfront mortgage insurance premium can be added on top of the limit.
An example
With a one-unit FHA limit of $1,249,125, the highest price at 3.5% down is about $1,294,430. A $1,400,000 home would need a down payment of about $150,875, or 10.8%, to stay within the limit.
FHA limits in the markets we cover
Counties across northern and central New Jersey, Long Island and the Bay Area are high-cost areas. Enter a ZIP code above for the exact figure.
Other FHA rules to know
- FHA loans are for homes you’ll live in as your main residence.
- FHA has an upfront mortgage insurance premium of 1.75% and an annual premium, usually 0.50% to 0.75% for 30-year loans.
- Condos must be on FHA’s approved list or approved individually.
Questions buyers ask
What is the FHA loan limit for 2026?
The national floor for a one-unit home is $541,287 and the high-cost ceiling is $1,249,125. The limit for the county where you’re buying is shown above.
Can I use FHA for a home above the limit?
Yes, if your down payment brings the loan within the limit.
Does the upfront premium count toward the limit?
No. The limit applies to the base loan; the upfront premium can be financed on top of it.