Home prices have continued to rise across the United States in 2026, prompting the Federal Housing Administration (FHA) to adjust its FHA loan limits once again to keep pace with inflation. These adjustments ensure that homebuyers can still access affordable loans, even in areas where prices have soared.
In this guide, we’ll break down the current FHA loan limits and explain how you can qualify for one of these government-insured mortgages in 2026.
Key takeaways
- FHA loan limits are updated annually and reflect local home prices.
- FHA loans remain a popular choice for first-time homebuyers and low-to-moderate income borrowers due to their more flexible qualification criteria compared to conventional loans.
- FHA loan limits for 2026 range from $472,030 to over $1,850,000, depending on location and property type.
- To qualify for an FHA loan in 2026, borrowers generally need a minimum credit score of 500 and a debt-to-income ratio below 43%
What is an FHA loan?
An FHA loan is a mortgage loan that is insured by the Federal Housing Administration, which reduces the risk to lenders and makes them more willing to offer favorable loan terms. Unlike conventional loans, FHA loans are more accessible to borrowers with lower credit scores, smaller down payments, and limited financial history.
These loans are particularly beneficial for first-time homebuyers, self-employed individuals, or those with non-traditional income sources who might not meet the requirements for a conventional mortgage.
How do FHA loan limits work?
FHA loan limits are the maximum amount that the FHA will insure for the purchase of a property. The idea behind FHA loans is that the FHA guarantees the lender that the balance of the loan is covered if the borrower defaults. This government guarantee makes banks more willing to make mortgage loans to those that may not otherwise qualify for a conventional loan. FHA loans often accept lower credit scores and down payments to qualify, making them ideal for low- to moderate-income and first-time homebuyers. For this reason, the FHA sets a limit on the amount they are willing to insure, thus creating the FHA loan limits. This amount limits the amount of home price you can choose from.
What is the most you can borrow with an FHA loan?
The FHA establishes the loan limits every year based on the median home prices throughout the country. However, there are some considerations regarding the actual FHA loan limit in the area you are looking for a home and the type of property you are looking to buy.
1. Single-Family (one-unit)
- National Floor (lowest limit): $472,030
- In high-cost areas, the maximum limit for a single-family home can go up to $1,850,000 or higher.
- For example, in areas like California, New York, and Washington D.C., FHA loan limits can reach up to $1,000,000 or more.
2. Multifamily
FHA loans are also available for multifamily properties. Limits increase as the number of units increases, and they vary by location:
- 2-Unit Property: Ranges from $603,100 to $2,370,000 in high-cost areas.
- 3-Unit Property: Ranges from $727,000 to $2,850,000 in high-cost areas.
- 4-Unit Property: Ranges from $907,000 to $3,000,000 in high-cost areas.
How FHA loan limits are set
FHA loan limits are directly tied to the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These limits are calculated based on median home prices across the United States. In areas with higher home values, the FHA increases loan limits to reflect the market conditions, providing more access to financing in those regions.
There are two key components to FHA loan limits:
- Floor: The minimum loan limit for areas where home prices are below the national median. For 2026, the floor is $472,030.
- Ceiling: The highest loan limit, which applies to high-cost areas, and is 150% of the floor. For 2026, the ceiling can go up to $1,850,000 for a single-unit property in these high-cost regions.
The ceiling applies to counties where home prices are much higher than the national average.
FHA loan requirements
To qualify for an FHA loan, there are requirements that you much meet as a borrower. These include:
- Credit Score: Borrowers must have a minimum credit score of 500 with a 10% down payment. Borrowers with a 580+ credit score may qualify with a down payment of as little as 3.5%.
- Residence: The property you are purchasing must be your primary residence.
- Property Standards: To back an FHA loan, the FHA requires that a property meet its building standards.
- Debt-to-Income Ratio (DTI): Your DTI cannot be above 43% and your mortgage payment cannot account for more than 31% of your total monthly income.
To learn more about FHA loan eligibility, read “Am I Eligible for FHA Loan?”
Qualifying for an FHA loan in 2026
2026 is the year to make your dream of homeownership come true and the increased FHA loan limits mean you may have a wider range of home options available to you. As a first-time homebuyer, the team at Hero Home Programs understands how overwhelming the home buying process can be and we are here to answer any questions you may have and help you achieve your homeownership goals. To learn more about how our team can help, contact us today.
