December 9, 2024
Thinking about buying a home but worried you might not qualify for a loan? The Federal Housing Administration (FHA) is making changes in 2025 that could help make your homeownership dreams a reality.
Bigger FHA Loan Limits in 2025
The FHA is increasing its loan limits for 2025. This means you can borrow more money to buy a home, which is great news in today’s market.
What are the New Limits?
For a typical single-family home in most parts of the U.S., the new loan limit is $524,225. But if you’re looking in a high-cost area, like California or the Northeast, the limit may go up to $1,209,750.
And it’s not just for single-family homes! The FHA also has options if you’re interested in a duplex or other multi-unit property.
- Two-unit property: $671,200
- Three-unit property: $811,275
- Four-unit property: $1,008,300
These increased loan limits give you more options and buying power. You may be able to afford a bigger house, get into a more competitive neighborhood, or simply have more choices when finding the perfect place to call home.
Take the Next Step
If you’re ready to explore your homeownership option, talk to a mortgage lender or a housing counselor. They can help you understand the process, see if you qualify, and find the best loan.
FHA loans have some unique features that make them a great option for many borrowers:
- Lower Credit Score Requirements: Had some credit challenges in the past? FHA loans are more forgiving.
- Smaller Down Payments: FHA loans often require smaller down payments than conventional loans.
- More Flexible Debt-to-Income Ratios: Even if you have other debts, you might still qualify for an FHA loan.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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