An FHA loan lets you buy a home with as little as 3.5% down, without having to meet the strict credit requirements for a conventional loan — which is why it's often the first option buyers with limited savings or imperfect credit reach for. But the program comes with tradeoffs, such as mortgage insurance that doesn't go away, and there are hard limits on how much you can borrow.
FHA loan limits vary depending on where you're buying. For 2026, the FHA has capped single-family home loans at $541,287 in most of the country. In higher-cost markets, that ceiling rises to $1,249,125.
Below you'll find a county-by-county lookup tool to see whether the FHA limits in your area work for the home you're considering — and what your options are if they don't.
2026 FHA loan limits
FHA loan limits cap the amount the Federal Housing Administration's insurance program will back in a given county. HUD sets new limits every January 1 based on conforming loan limits established by the Federal Housing Finance Agency (FHFA).[2]
For 2026, the FHA limits for single-family homes range from a national floor of $541,287 in most counties to a ceiling of $1,249,125 in high-cost markets. Limits are also higher for 2-, 3-, and 4-unit properties, and higher still for Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where construction costs justify elevated ceilings.
Here's the full 2026 breakdown:
| Property type | Most areas (floor) | High-cost areas (ceiling) | AK / HI / Guam / USVI |
|---|---|---|---|
| 1 unit (single-family) | $541,287 | $1,249,125 | $1,873,625 |
| 2 units | $693,050 | $1,599,375 | $2,399,050 |
| 3 units | $837,700 | $1,933,200 | $2,899,800 |
| 4 units | $1,041,125 | $2,402,625 | $3,603,925 |
How are FHA loan limits determined?
The math behind the numbers is straightforward once you see it. The FHA floor is 65% of the FHFA's conforming loan limit for that year.[3] In 2026, the conforming limit for a single-family home is $832,750, and 65% of that is $541,287 — the FHA floor.[4] The ceiling is 150% of the conforming limit, which lands at $1,249,125 for most high-cost markets. By law, HUD must also peg each county's limit at 115% of that county's median home sale price, subject to the floor and ceiling. If 115% of median falls below $541,287, the county stays at the floor. If it exceeds $1,249,125, it stays at the ceiling. The majority of U.S. counties sit at the floor.
A county qualifies as a "high-cost area" when 115% of its median home price exceeds the national floor. This classification is recalculated annually, which means a county that sat at the floor three years ago may now have an intermediate limit — and vice versa.
FHA loan limits vs. conventional conforming limits
FHA limits and conventional conforming limits both get set annually, but they're not the same numbers — and the gap between them is significant for buyers in mid-cost markets.
The FHA floor of $541,287 sits well below the conventional conforming limit of $832,750 for most areas. That means a buyer targeting a $650,000 home in a county where the FHA limit is at the floor may be locked out of FHA financing for that purchase — but the same home could be financed conventionally without exceeding the conforming limit. In high-cost counties, both limits converge at $1,249,125, so the gap disappears at the top end.
Why does this matter beyond the dollar cap? Because the type of loan affects the cost, not just the amount you can borrower. Charlie Wilson, Executive Loan Officer at Best Interest Financial, explains the core difference: conventional mortgages use risk-based pricing, so your interest rate and mortgage insurance costs are tied directly to your credit score and down payment. FHA pricing is more standardized — mortgage insurance costs are largely the same regardless of whether your credit is good or excellent. That means the cheaper option depends on your profile, not just which limit you fall under.[5]
For buyers with lower credit scores or higher debt-to-income ratios, FHA often comes out ahead even when a conventional loan is technically available. For buyers with strong credit and 10% or more to put down, conventional is typically cheaper over the life of the loan — because PMI is cancellable at 80% LTV, and FHA's monthly mortgage insurance isn't.
Use the tool below to see both the FHA and conventional conforming limits for any county in the U.S. side by side.
2026 Mortgage Loan Limits by County
Select a loan type, state, and county to see the maximum loan amount for each property type.
Choose a state and county above to view loan limits.
Limits shown reflect 2026 figures, effective January 1. The tool displays limits for 1–4 unit properties.
Other FHA loan requirements
The county limit is one constraint on FHA eligibility. What you qualify for as a borrower is the other. Here's what the FHA program requires — and how FHA requirements compare with a conventional loan.
- Credit score. The FHA credit score floor is 580 with a 3.5% down payment, or 500 with a 10% down payment.[1] In practice, many lenders set their own "overlay" minimums above the FHA floor — 620 to 640 is common — so what the program allows and what you can actually get approved for may differ. If your score is in the 580–620 range, shopping multiple lenders matters.
- Down payment. A minimum of 3.5% is required with a 580+ score, and 10% with a score between 500 and 579. Unlike conventional loans, the full down payment can come from gift funds or eligible down payment assistance programs — making FHA more accessible for buyers who don't have the cash saved themselves.
- Debt-to-income ratio (DTI). The standard ceiling is 43%, though lenders can go higher with compensating factors such as strong cash reserves or a particularly clean credit history. This flexibility is meaningfully greater than the conventional ceiling of around 45%, and it's the reason many buyers with solid credit scores still choose FHA. If student loans or other recurring debt push your DTI above the conventional ceiling, FHA may be the option that keeps the door open.
- Mortgage insurance. All FHA loans carry two types of mortgage insurance: an upfront premium (UFMIP) of 1.75% of the loan amount, typically rolled into the loan balance, and an annual premium paid monthly. The annual rate depends on your loan term, LTV, and loan amount, but for most 30-year loans with less than 10% down it runs around 0.55% annually. The bigger long-term implication is duration: if you put down less than 10%, FHA mortgage insurance is required for the life of the loan. Conventional PMI, by contrast, is cancellable once you reach 20% equity. For most FHA borrowers, refinancing into a conventional loan is the practical path to eliminating MIP.
- Property and occupancy. The home must be your primary residence — FHA financing can't be used for second homes or investment properties. The property also has to meet FHA minimum property standards, which are evaluated as part of the appraisal. Older homes or properties being sold as-is sometimes run into appraisal issues that can delay or complicate closing.
One thing Wilson hears constantly from buyers: the assumption that they won't qualify. "In today's market, I'm finding it's easier to qualify for an FHA mortgage than it is to meet most landlord requirements for rentals," he says.[5] If you're on the fence about whether your financial profile clears the bar, the better move is to talk to a lender and find out.
How to find an FHA lender
FHA loans are originated by private lenders — banks, credit unions, and mortgage companies — not by the government directly. The FHA sets the program rules, but lenders set the rates, fees, and overlay requirements. That distinction matters because it means the cost of an FHA loan can vary meaningfully from lender to lender, even for the same borrower on the same property.
Most buyers focus on the interest rate when comparing lenders, but Wilson points to total origination charges as the number that actually tells you what the loan costs. Origination charges are the fees the lender charges to create the mortgage: underwriting fees, processing fees, and discount points. Two lenders can quote the same rate and differ by $1,500 or more in origination charges — and that gap is pure cost to the borrower.[5]
Here's a concrete example from Wilson: on a $300,000 FHA loan at a 5.75% interest rate, Lender A might charge $1,300 in underwriting, $400 in processing, and 0.5 points ($1,500) in discount points — total origination of $3,200. Lender B quotes the same rate and the same loan but charges 1 full point ($3,000) in discount points — total origination of $4,700. Both lenders are offering the same mortgage. The borrower is paying $1,500 more with Lender B for the privilege.[5]
A few practical considerations when shopping:
- Get loan estimates in writing from at least two or three lenders — not verbal quotes. Standardized loan estimate forms make apples-to-apples comparison possible.
- Ask each lender to show you both an FHA and a conventional loan estimate for your scenario. The only way to know which is cheaper for your specific credit profile and down payment is to see the numbers in writing, side by side.
- Be aware that lenders can set overlay requirements above FHA's floors. A lender requiring a 640 minimum credit score won't approve a 600-score borrower regardless of what the FHA program technically allows. Shopping multiple lenders — or working with a mortgage broker who can match your profile to lenders whose overlays fit — helps navigate this.
Connect with a loan officer to see what you qualify for
Whether you're trying to figure out how much you can borrow, deciding between FHA and conventional, or wondering how your credit profile affects your options, talking to a loan officer can help you cut through the complexity and help you make a plan tailored to your financial profile.
At Best Interest Financial, we provide personalized, white-glove service that big-box and automated lenders can’t. With over 80 years of combined experience and billions in closed loans, our loan officers have the expertise to help identify creative financing possibilities that others miss.
No matter what your timeline is, we can help you develop a strategy to reach your goals and get you on the path to home ownership. Get a free, 60-second quote from Best Interest today to learn more.
Frequently asked questions
Can I buy a home above the FHA loan limit?
Yes, but you'll need to cover the gap between the FHA limit and the purchase price out of pocket — on top of your minimum down payment. For example, if your county's limit is $541,287 and the home costs $600,000, you'd need to bring an additional $58,713 to closing. Depending on how large that gap is and your overall financial profile, switching to a conventional loan may be the more practical path.
What is the maximum you can borrow on an FHA loan?
It depends on your county and the property type. For a single-family home in 2026, the FHA cap ranges from $541,287 in most counties to $1,249,125 in designated high-cost markets. Borrowers in Alaska, Hawaii, Guam, and the U.S. Virgin Islands may qualify for even higher limits due to elevated construction costs. Use the county lookup tool above to find the exact ceiling for your area. Keep in mind that the limit is a program ceiling, not a guarantee — what you're actually approved for depends on your income, credit score, and DTI.
Why do sellers sometimes hesitate to accept FHA offers?
FHA loans require an appraisal that does double duty: it establishes the home's value and checks that the property meets FHA minimum property standards. If the appraiser flags safety or habitability issues, the seller may be required to make repairs before the loan can close — or risk losing the deal. Sellers of older homes or properties being sold as-is sometimes prefer offers backed by conventional financing to avoid that complication.
That said, the hesitation is often overstated, and it's not insurmountable. A strong offer price, a solid pre-approval letter from a reputable lender, and a larger earnest money deposit can all signal to a seller that the buyer is serious and well-qualified — which goes a long way toward offsetting concerns about the loan type. In many markets, sellers who reject FHA offers outright are leaving a significant pool of buyers on the table.
How much of a down payment do I need for an FHA loan?
FHA loans require a minimum down payment of 3.5% if your credit score is 580 or higher, or 10% if your score falls between 500 and 579.[1] Here's how that plays out at different purchase prices:
| Purchase price | Credit score | Down payment % | Down payment $ | Base loan amount |
|---|---|---|---|---|
| $300,000 | 580+ | 3.5% | $10,500 | $289,500 |
| $400,000 | 580+ | 3.5% | $14,000 | $386,000 |
| $400,000 | 500–579 | 10% | $40,000 | $360,000 |
| $500,000 | 580+ | 3.5% | $17,500 | $482,500 |
Note that the figures above show the base loan amount before the FHA's upfront mortgage insurance premium (UFMIP) is added. The UFMIP — 1.75% of the loan amount — is typically rolled into the loan balance rather than paid at closing. On a $386,000 base loan, that adds approximately $6,755 to what you owe, bringing the total financed amount to $392,755.
Down payment funds can come from personal savings, gift funds from family members, or eligible down payment assistance programs. FHA's flexibility on gift funds is one of its meaningful advantages over conventional loans. Use our FHA loan calculator to estimate your monthly payment at different purchase prices and down payment amounts — including the MIP that comes with each scenario.