What is an FHA Loan? Requirements, How to Get One and Best Lenders
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The FHA loan limits for 2024 allow homebuyers to borrow up to $498,257 for a single-family home in most parts of the country. Those purchasing a home in an area designated as “high-cost” may be able to borrow up to $1,149,825.
FHA loan limits spell out the maximum amount you can borrow using a mortgage backed by the Federal Housing Administration (FHA). Read on to learn how to find the limits in your county, as well as how they’re determined and what they mean for you.
| Number of units | Lowest loan limit | Highest loan limit | Special exception areas: Alaska, Hawaii, Guam and the Virgin Islands |
|---|---|---|---|
| 1 | $498,257 | $1,149,825 | $1,724,725 |
| 2 | $637,950 | $1,472,250 | $2,208,375 |
| 3 | $771,125 | $1,779,525 | $2,669,275 |
| 4 | $958,350 | $2,211,600 | $3,317,400 |
Limits on FHA loans are based on the type of property you’re purchasing and the county or Metropolitan Statistical Area (MSA) it’s located in. To find the exact limits for your area, use the FHA mortgage limits finder tool on the FHA website. The closer you live to an expensive city, the higher the loan limits are likely to be.
HECM loan limits
Home equity conversion mortgages (HECMs), more commonly known as reverse mortgages, come with their own FHA loan limits. In 2024, qualified seniors can borrow up to $1,149,825 from an FHA-approved lender.
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How are FHA loan limits determined?
FHA loan limits are set according to the terms of the National Housing Act, and are calculated as a percentage of the conforming loan limit amounts set each year for conventional loans by the Federal Housing Finance Agency (FHFA). (Conventional loans are also called conforming loans because they “conform” to rules set by Fannie Mae and Freddie Mac.)
The lowest FHA loan limit across the U.S., also known as the “floor,” is 65% of the 2024 conforming loan limit of $766,550. That comes to $498,257 for a one-unit home and applies to most counties across the country.
The FHA loan maximum, sometimes called the “ceiling,” comes into play in high-cost areas and is calculated as 150% of the conforming loan limit. For 2024, that means the maximum amount you can borrow is $1,149,825 in high-cost areas. The only way to get a larger loan is to purchase outside the continental United States in one of the special exception areas: Alaska, Hawaii, Guam or the Virgin Islands.
An FHA-approved lender will review your loan application to see if you meet the minimum mortgage requirements for an FHA loan, which are more flexible than the guidelines for conventional loans.
- Credit score and down payment. You’ll need a 580 credit score to make the minimum 3.5% down payment. Lenders may approve scores as low as 500 with a 10% down payment.
- Income and employment history. A two-year stable employment and income history is the standard requirement for an FHA loan.
- DTI ratio. Lenders use the total debt you carry divided by your before-tax income to calculate your debt-to-income (DTI) ratio. Most lenders prefer a 43% maximum, but exceptions are possible.
- Occupancy. Homes financed by FHA loans must be primary residences.
- Home appraisal. FHA appraisers assess your home’s value and whether it meets strict safety and habitability requirements outlined in FHA appraisal guidelines.
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- 2024 FHA loan limits
- How are FHA loan limits determined?
- 2024 FHA loan requirements
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