July 14, 2020
FHA mortgages have limits established by county–the limits are not the same in all markets or in all zip codes nationwide. It is true that FHA loan limits are the same for a great many zip codes, but not all.
FHA loan limits vary depending on whether the housing market in question is in a high-cost area, a low-cost area, or one that is “typical”.
And the amount of the FHA loan limits have nothing to do with the borrower’s ability to qualify for a loan or for a specific amount–you can’t qualify for a higher loan limit by having a better FICO score.
FHA home loan limits are set nationwide, usually once at end of the previous year–the annual limits are posted by the FHA and HUD, and go into effect in January every New Year’s Day.
FHA loan limits vary by county and as mentioned above, high and low-cost areas will feature a different “floor” and “ceiling” for FHA loans. The limits are set by the FHA and HUD and are based on a percentage of the Fannie Mae and Freddie Mac Conventional Loan Limits.
FHA loan rules allow the purchase of houses (by owner-occupiers) with as many as four living units. The FHA loan limit is higher for homes with more units. You aren’t restricted to the same FHA loan limit for a four-unit home as you are for a single-unit property.
Something called the FHA Jumbo Loan makes it possible to get an FHA mortgage for an amount higher than the FHA loan limit. Your ability to qualify for a Jumbo Loan will, like typical FHA mortgages, depend on circumstances and financial qualifications.
Standards will vary for FHA Jumbo Loans–you may find a higher FICO score may be required to apply for a loan that exceeds the limit. Ask your loan officer about FHA Jumbo Loans and what it takes to qualify for one.
FHA Home Loan Limits For 2020
FHA loan limits for 2020 are not restricted to a single list. Instead, there is one for high-cost markets, and one for low-cost housing markets.
The typical FHA loan limit “floor” nationwide for a single family home is $331,760 and that generally applies for roughly 80% of all counties in the United States. For 2020, FHA home loan limits in high-cost and low-cost areas are as follows:
FHA Loan Limits In Low-Cost Housing Markets
- 1-unit home : $331,760
- 2-unit home : $424,800
- 3-unit home : $513,450
- 4-unit home : $638,100
FHA Loan Limits In High-Cost Housing Markets
- 1-unit home: $765,600
- 2-unit home: $980,325
- 3-unit home: $1,184,925
- 4-unit home: $1,472,550
Ask your lender, real estate agent, or look up the amounts of FHA loan limits in your area online. You can also use an online mortgage calculator to help you determine how affordable an FHA home loan at the limit might be based on your financial goals and needs.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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