What Is the Maximum Loan Amount for FHA in 2022?
How FHA loan limits work | 2022 FHA loan limits | Buying a more expensive house | FAQs
FHA-backed mortgages have a maximum on how much you can borrow, referred to as loan limits. There are national limits, but they can change based on your location and property size.
In 2022, the FHA loan limits are $420,680 for low-cost areas and $970,800 for high-cost areas. You can still buy a home that exceeds these loan limits, but you’ll need to come up with the difference yourself or get a jumbo loan.
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FHA loan limits (2022)
For the continental U.S., the FHA loan limits for 2022 are the following:
Property type | Low-cost areas | High-cost areas | AK, HI, GU, VI |
|---|---|---|---|
1-unit | $420,680 | $970,800 | $1,456,200 |
2-unit | $538,650 | $1,243,050 | $1,864,575 |
3-unit | $651,050 | $1,502,475 | $2,253,700 |
4-unit | $809,150 | $1,867,275 | $2,800,900 |
Source: U.S. Department of Housing and Urban Development, 2022 | |||
For Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the high-cost limits on FHA loan limits is higher because the cost to build homes is higher.
Reverse mortgage lending limits (HECM)
The FHA also sets loan limits on reverse mortgages. For 2022, the nationwide loan limit for reverse mortgages is $970,800.
What is an FHA loan limit?
FHA loan limits are the maximum amounts the Federal Housing Administration is willing to insure for home purchases in different counties. For home buyers, these limits represent the maximum you can borrow before your loan is considered a jumbo loan.
Do FHA loans have…
Loan limits? Yes. For 2022, the limit for single-family homes is $420,680 for low-cost areas and $970,800 for high-cost areas.
Income limits? No. The FHA does not deny applicants based on how much they make. However, your debt-to-income ratio has to be lower than 43%.
Purchase price limits? No. Your house can be more expensive than the FHA loan limits. However, you'll have to cover the difference yourself or get a jumbo loan.
Loan limits change every year to account for changes in the overall market. The FHA calculates the loan limits for your area by:
- Setting the national floor and ceiling
- Adjusting by county and metropolitan area
- Adjusting by property type
1. Setting the national 'floor' and 'ceiling'
First, the FHA set a maximum limit for low-cost and high-cost areas, regardless of location.
The Federal Housing Finance Agency sets conforming loan limits, which the FHA uses to set a national "floor" and "ceiling":
- 65% of the conforming loan limit is the floor (minimum)
- 150% of the conforming loan limit is the ceiling (maximum)
For instance, the 2022 maximum conforming loan limit for single-family homes is $647,200. So the FHA sets the floor at 65% ($420,680) and the ceiling at 150% ($970,800).
👉 What affects the national floor and ceiling? The median home value is the main factor affecting floors and ceilings. When home values go up broadly across the country, you can expect loan limits to follow. |
2. Adjusting limits by county and metropolitan area
Next, the FHA examines the median home value for each county or metropolitan area. If 115% of the area’s median home value is higher than the national floor, then that figure will be the maximum loan limit.
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For example, let’s say the median home value in County A is $280,000, and 115% is $322,000. Since this figure is below the national floor, the FHA sets the loan limit for County A as $420,680.
County B, however, has a median home value of $450,000, and 115% of that is $517,500. Since this figure is higher than the national floor ($420,680), the FHA sets it as the loan limit.
🔍 Where can I find the FHA loan limits for my county? Use the search engine powered by the U.S. Department of Housing and Urban Development (HUD) to find your local loan limits. |
3. Adjusting loan limits by property type
Finally, the FHA adjusts limits based on the number of units in a home. The more units, the higher the maximums.
What if my house costs more than the loan limit?
You have a few options: make a higher down payment, take out a jumbo loan, or choose a different loan.
Buy it anyway
You can still qualify for an FHA loan, even if your home purchase exceeds the loan limits for your area. You just need to pay the difference as your down payment.
For instance, if you want a $500,000 house but your local loan limit is $420,680, you can put down $79,320 in cash, and your FHA lender will likely lend you the rest ($420,680).
Take out an FHA jumbo loan
FHA jumbo mortgages exceed the loan limits for an area. A jumbo loan allows you to buy a house in a high-price market — but that comes with a lot of extra hoops:
- Jumbo loans often come with higher closing costs than traditional FHA loans — though interest rates may be more favorable.
- You might need a year’s worth of mortgage payments in a savings account to qualify.
- Your jumbo loan will also go through manual underwriting (a deeper dive on your finances) and you’ll likely need a high credit score to make it through.
Consider a loan option with different restrictions
Finally, if your home purchase exceeds the FHA loan limits, you might be better off getting another type of loan.
Loans with higher limits include:
Loan type | Conventional | USDA | VA |
|---|---|---|---|
Low-cost limit | $647,200 | None | $647,200 |
High-cost limit | $970,800 | None | $970,800 |
Down payment | 3% | No minimum | No minimum |
Credit score | 620 | 640 | No minimum |
DTI ratio* | 45% | 41% | 41% |
Max income limit | None | $103,500 | None |
* Lenders may allow higher DTI ratios with compensating factors. | |||
FAQs about FHA loans
The FHA requires borrowers to make a down payment of at least 3.5% and have a credit score above 580 (or a down payment of 10% and score above 500). Borrowers must also have a debt-to-income ratio of 43% or higher.
High balance loans, also called jumbo loans, exceed the maximum loan limit for a specific county.
For low-cost areas, the maximum is $420,680 for single-family homes. High-cost areas have a maximum of $970,800.
The FHA doesn’t have a loan minimum, but it will back a loan of $420,680 — possibly more depending on your location.