FHA loan limits in 2023: What borrowers need to know
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FHA borrowers have a bigger budget when it comes to buying a home in 2023. The U.S. Department of Housing and Urban Development (HUD) increased FHA loan limits for most U.S. counties this year. Here’s what to know if you’re looking for a mortgage with a low down payment.
What are FHA loan limits?
FHA loan limits are the maximum amounts that the FHA (Federal Housing Administration) will insure on different types of properties — for example, single-family homes and duplexes — in different counties in each state.
The loan limits, which vary with local housing values and by property type, are calculated and updated annually, and are influenced by the conforming loan limits set by Fannie Mae and Freddie Mac.
FHA loan limits 2023
|FHA loan limits||Most areas||High-cost areas||Alaska, Hawaii, Guam and U.S. Virgin Islands|
|Duplexes (two units)||$604,400||$1,394,775||$2,092,150|
|Triplexes (three units)||$730,525||$1,685,850||$2,528,775|
For single-family home loans this year, the FHA loan limits range from a floor of $472,030 to a ceiling of $1,089,300. More expensive areas have higher FHA loan limits.
How to find FHA loan limits for your area
To help you find the limit for any county or state, Bankrate has compiled the limits for every county in the nation here. HUD also has an online search tool to help you find FHA loan limits. You can search by county or state.
Factors affecting FHA limits in 2023
The hike in FHA loan limits is primarily due to swelling home prices. The National Housing Act, as amended by the Housing and Economic Recovery Act of 2008 (HERA), mandates that the FHA set single-family forward loan limits at 115 percent of median home prices, and that they can’t be more than 150 percent of the standard limit. HERA rules state that the FHA must set floor and ceiling loan limits based on the loan limit set by conforming mortgages backed by Fannie Mae and Freddie Mac.