FHA loans are an excellent option for homebuyers seeking flexible credit requirements and lower down payments. However, these loans come with borrowing limits that vary by location and property type. The Federal Housing Administration (FHA) has announced updated loan limits for 2025, reflecting changes in the housing market. Here’s everything you need to know about these limits and how they impact your home-buying or refinancing options.
The FHA sets two main limits for each county based on local housing prices:
Low-Cost Area “Floor”:
The minimum loan limit applies to counties with lower home prices. For 2025, the floor is set at $524,225 for single-family homes.
High-Cost Area “Ceiling”:
The maximum loan limit applies to counties with higher home prices, such as parts of California or New York. For 2025, the ceiling is set at $1,209,750 for single-family homes.
Special Exception Areas:
In high-cost areas such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the limits are even higher to accommodate elevated construction and housing costs.
HECM Loan Limits
The HECM maximum claim amount will increase from $1,149,825 in calendar year 2024 to $1,209,750 for FHA case numbers assigned on or after January 1, 2025. This maximum claim amount applies to all areas, including the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands.
These limits are effective for FHA case numbers assigned on or after January 1, 2025. (Source: HUD)
The FHA loan limits vary depending on the type of property and location:
| Property Type | Low-Cost Areas “Floor” | High-Cost Areas “Ceiling” |
|---|---|---|
| One-Unit Property | $524,225 | $1,209,750 |
| Two-Unit Property | $671,200 | $1,548,975 |
| Three-Unit Property | $811,275 | $1,872,225 |
| Four-Unit Property | $1,008,300 | $2,326,875 |
Special exception areas like Alaska, Hawaii, Guam, and the U.S. Virgin Islands have higher limits due to unique housing market conditions. (Source: HUD)
FHA loan limits are calculated as a percentage of the conforming loan limits set by the Federal Housing Finance Agency (FHFA):
To check your area’s specific loan limits, use the FHA Loan Limit Lookup Tool.
With our industry-leading 1.5% fee structure, you can maximize your savings while achieving your financial objectives.
Defines Your Purchasing Power:
FHA loan limits determine the maximum amount you can borrow, impacting the type of home you can afford.
Varies by Location:
Higher limits in high-cost areas enable buyers to access homes in competitive markets.
Affects Loan Eligibility:
Staying within the limits is essential for FHA loan approval.
If your property’s price exceeds FHA loan limits:
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The minimum limit is $524,225 for a single-family home in low-cost areas.
No, limits increase for multi-unit properties, such as duplexes or triplexes.
Yes, FHA reviews and updates loan limits annually based on housing market data.
You can use the FHA Loan Limit Lookup Tool provided by HUD.
Yes, certain high-cost areas and special exception areas have higher loan limits.
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In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
In today’s fluctuating economy, Canadian homeowners are increasingly looking at refinancing their mortgages
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