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FHA loans are government-backed mortgages that make homeownership more affordable for borrowers with limited down payment funds and less-than-stellar credit histories. However, the Federal Housing Administration (FHA) limits the amount you can borrow, and these limits change annually. The 2026 loan limit for single-unit properties is $541,287, an increase from the 2025 limit of $524,225.
What is an FHA loan limit?
An FHA mortgage loan limit is the maximum amount you can borrow with an FHA loan. The U.S. Department of Housing and Urban Development (HUD) oversees the FHA and sets the annual borrowing limits. This number varies by county and property type. Typically, it’s lower for one-unit properties and the highest for four-unit properties. More expensive counties will also have higher FHA loan limits than areas with a lower cost of living.
Keep in mind that you typically can’t automatically borrow up to the maximum limit for your county. FHA loan enders will determine your borrowing capacity based on your credit score, income, and other financial factors.
FHA loan limits for 2026
The FHA loan max amount varies each year to reflect changes in home prices. Here’s what they look like for 2026:
How is the FHA loan limit determined?
The FHA uses a formula set by the National Housing Act to establish its floor and ceiling loan limits based on the national conforming loan limit set by the Federal Housing Finance Agency (FHFA). In 2026, the national conforming loan limit for a one-unit property is $832,750.
The lowest FHA loan limit across the U.S. in 2025 is set at 65% of the national conforming loan limit — $541,287. The FHA loan limit ceiling for high-cost areas is calculated as 150% of the conforming loan limit, which comes out to $1,249,125.
FHA vs. conforming loan limits
If you’re eyeing a more expensive property, you may want to consider taking out a conforming conventional loan instead of an FHA loan. This is because the FHA loan limit is usually lower than the limit for conforming loans.
For example, single-family homes in most parts of the U.S. have a maximum FHA loan amount of $541,287 in 2026, whereas the conforming loan limit for one-unit properties is $832,750 in most counties.
FHA loan requirements
Besides loan limits, FHA loans have specific eligibility requirements you have to meet before lenders will approve your application.
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Credit score and down payment:If you have a minimum credit score of 580, lenders will typically allow as little as a 3.5% down payment. If your credit score is between 500 and 580, you’ll need to come up with a 10% down payment.
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Debt-to-income ratio (DTI):Your debt-to-income ratio refers to your required monthly debt payments in relation to your before-tax monthly income. Most FHA loan lenders prefer to see a DTI ratio below 43%, though some will accept higher DTI ratios if other aspects of your financial profile are strong.
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Income requirements:FHA loans do not have minimum or maximum income requirements, but lenders will consider other factors, such as your debt-to-income ratio and monthly expenses, to gauge your ability to afford the home loan.
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Mortgage insurance:You’ll have to pay up-front and ongoing FHA mortgage insurance premiums (MIPs) regardless of your down payment amount. The up-front MIP is typically paid at closing and the annual MIP is built into your monthly mortgage payments.
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Home appraisal.If you plan to buy a house using an FHA loan, the property must go through a type of home appraisal specifically for FHA loans. The appraisers will assess your home’s value and check whether it meets the FHA Minimum Property Standards.
Is an FHA loan right for you?
FHA loans can make homeownership more attainable if you have minimal cash savings and a credit score that could use some improvement. However, because they come with pretty stringent property appraisal standards and mandatory mortgage insurance, you may want to consider conventional mortgages first if your credit score is at least 620.
FHA loans also aren’t your only option if you don’t have 20% for a down payment. You might qualify for a VA loan or USDA loan, neither requiring any money down. In many cases, you can also get a conforming loan with as little as 3% down. Shop around with mortgage lenders to learn which type of mortgage is best for you and to compare each lender’s interest rates and fees.
FHA loan limits FAQs
What is the downside of an FHA loan?
One of the biggest downsides of an FHA loan is that you’re required to pay mortgage insurance premiums regardless of your down payment amount. You’ll pay MIP in two ways: an up-front portion due at closing and an ongoing annual MIP paid in monthly installments. The up-front MIP costs 1.75% of the loan amount, and the annual MIP varies depending on the term, size, and loan-to-value (LTV) ratio of your mortgage.
How much will the FHA approve me for?
The FHA approves loan amounts based on factors like your credit score, living expenses, assets, debt-to-income ratio, household income, and the value of the property. As of 2026, the FHA maximum loan limit for a one-unit property is $541,287 in low-cost areas and $1,249,125 in high-cost areas.
How much income is too much for an FHA loan?
You don't have to worry about making too much money to qualify for FHA loans since they don't have income requirements. However, lenders will consider other factors, such as your credit score and debt-to-income ratio, to determine your eligibility and how much to lend you.
Laura Grace Tarpley edited this article.
