FHA Loan Limits: How Much Can You Borrow In 2024?

A Federal Housing Administration (FHA) loan is an accessible loan option for a wide range of potential home buyers looking to achieve homeownership. This loan program doesn’t require a credit score as high as the score that most alternative loan programs demand, making it easier for first-time home buyers or those with some financial struggles to become lender-approved.

Since the amount you can borrow will play a role in which houses are worth exploring as options for purchase, you’ll need to be familiar with the maximum loan amounts in your area when buying a home with an FHA loan.

How FHA Loan Limits Work

FHA loan limits place a cap on how much you can borrow for a home purchase. The FHA uses two crucial factors to determine these limits: the property’s location (a low-cost area versus a high-cost area) and the type of property (single-family home or multi-family home with multiple units).

The FHA loan limit (or “floor”) for a single-unit property in a low-cost area is 65% of the loan limit on conventional conforming loans during any given year (conventional conforming loans are non-government-backed loans offered by private lenders and adhering to the lending guidelines of Fannie Mae and Freddie Mac). The FHA loan limit (or “ceiling”) in high-cost areas such as urban areas and pricier suburbs is 150% of the conforming loan limit.

Areas where the loan limit exceeds 115% of the median home price for that area are classified as high-cost.

2024 FHA Loan Limits

New loan limits are set on FHA mortgage loans every year, going into effect January 1. The limit applicable to you will depend on where your property is located.

FHA Maximum Loan Amounts

FHA loan limits were updated for 2024, as they are each year, based on the cost of housing in different parts of the country. In 2024, the FHA loan max amount for a one-unit property in high-cost metropolitan and suburban areas is $1,149,825 while the max number drops to $498,257 for most of the country – where housing costs are considerably lower.

In places such as Alaska and Hawaii that are under United States jurisdiction but outside of the continental U.S., loan limits are even higher than in areas technically considered high cost. This is to account for the higher cost of construction.

Here’s a full breakdown:

While both FHA loan and conventional conforming loan amounts are capped based on the limits set by the Federal Housing Finance Agency (FHFA) each year, they’re not the same. For example, the FHA limit for low-cost areas is just 65% of the limit for conventional conforming loans, as already noted.

In 2024, conventional conforming loans for a one-unit property can’t exceed $766,550 in most areas of the continental United States. Alaska, Hawaii and high-cost areas within the continental U.S. have a loan limit of $1,149,825.

How To Find Your County’s FHA Loan Limits

While there are common limits, your FHA loan limit may be different than some else’s. That’s because FHA loan limits are set based on county property values, so they vary by location. To find the maximum in your county, you can search for it using HUD’s FHA mortgage limits page.

FHA Loan Requirements

An FHA loan is a mortgage made possible by the Federal Housing Administration, which operates under the U.S. Department of Housing and Urban Development (HUD). The FHA insures all FHA loans, meaning the FHA protects lenders from monetary loss in the event that a borrower defaults on their loan.

Generally, FHA loans appeal to first-time home buyers and borrowers with less-than-desirable credit since they allow for a low down payment and a relatively low credit score. If you’re considering an FHA home loan, here are the requirements you can expect to face:

• Debt-to-income ratio (DTI): You’ll typically need a DTI of 57% or less to qualify.
• Minimum down payment: You can make a down payment as low as 3.5% of the purchase price, but no lower.
• Minimum credit score: You’ll need a minimum 580 FICO^® Score to be approved by Rocket Mortgage^®. Some lenders allow for a credit score in the 500 – 579 range with a 10% down payment.
• Mortgage insurance premium: You need to pay an FHA mortgage insurance premium (MIP) for at least the first 11 years of the loan repayment term.
• Proof of income: You’ll need to show you have steady income. Mortgage lenders may ask for pay stubs, tax returns and bank statements.
• Primary residence: You must be planning to treat the home as a primary residence and move in within 60 days of closing on the house.

The Bottom Line: Know The FHA Loan Limits For Your Area

FHA loan limits vary by a property’s location and number of units the property includes. Every year, the FHA reviews these limits and updates them, if needed, based on the changes in market conditions. For 2024, the FHA loan limits went up from 2023 to accommodate increases in home prices.

Every potential home buyer should compare FHA loan programs and lenders while being aware of the limits they have to work with in their area. If you’re ready to jumpstart the home-buying process, start your mortgage application with Rocket Mortgage® today.