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The Ultimate Guide to FHA Loan Limits

Key Learnings
  • FHA loan limits depend on the county you reside in, and the type of property you are purchasing
  • The FHA loan limit is $420,680 for most counties and $970,800 for higher cost counties
  • If you are looking to buy a home that is higher than your FHA loan limit, you'll want to consider an FHA Jumbo Loan
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If you’ve been considering an FHA loan to finance your home, you may already know that there are a lot of potential benefits. From low down payments to lenient credit requirements, it’s definitely an attractive option for many homebuyers.

However, FHA loans come with county loan limits, so it’ll be essential to understand them before falling in love with a home.

FHA Loan Limits

In 2022, the FHA loan limit is $420,680 for most counties, with higher-cost areas having a loan limit of $970,800.

The FHA sets limits for how large of a loan it will insure. These limits are calculated and updated each year. Loan limit calculations aren’t always cut and dry and depend on the county you are purchasing in and the type of property you’re looking to buy.

Whether you’re looking at a single-family home, a duplex or even a fourplex, each property type has loan limits enforced by the FHA.

2022 FHA Loan Limits for High and Low-Cost Areas

Single-Family Duplex Triplex Fourplex
Low-cost areas $420,680 $538,650 $651,050 $809,150
High-cost areas $970,800 $1,243,050 $1,502,475 $1,867,275
Alaska, Hawaii, Guam and the Virgin Islands* $1,233,550 $1,579,500 $1,909,125 $2,372,625

These numbers don’t tell the full story, however, remember that FHA loan limits are based on a county level. In order to find your exact FHA loan limit, get in touch with an FHA loan specialist at Paddio.

How FHA Loan Limits are Calculated

FHA loan limits are determined by two things: the type of property you are purchasing (single-family home, duplex, triplex, fourplex) and the area you are purchasing a home in.

As mentioned above, some locations are deemed “high-cost,” so FHA loan limits are calculated to reflect that.

High-cost areas are determined by the average income level, market conditions and the average cost of homes in the area.

What If You Need a Loan Over the FHA Loan Limit?

What happens if you’ve found your dream home and then find out you need more than the FHA loan limit? In this case, you’ll want to look into FHA Jumbo Loans. FHA Jumbo Loans are mortgages that are higher than the county loan limit in your area.

For example, if your county loan limit is $420,680 and the home you’re wanting to buy is $500,000, you’ll need to use an FHA jumbo loan. Jumbo Loans typically come with higher credit requirements, so be sure to speak with an FHA loan specialist to see where you stand.

Another option for borrowing over the FHA loan limit is to make up the difference in your down payment. Because FHA loans only require 3.5% down, you may want to consider bumping up your down payment when looking to go over the limit.

Is an FHA Loan Right for You?

Now that you understand the ins and outs of FHA loan limits, you might be wondering if an FHA loan is right for you. If you’re ready to explore your loan options, the experts at Paddio are here to help. We can assist you with evaluating different types of mortgage loans so you can select the best one for you.

Since the lender you choose can make a big difference, we'll also help match you with the perfect institution for your circumstances. Contact us today to learn more and get started on your homebuying journey.

Written by:
Crystal Shifflett
Loan Coordinator

Crystal’s experience spans many aspects of the homebuying process, including closing and title work, but perhaps her own personal experience of purchasing several homes across state lines helps her connect with and advocate for homebuyers.

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