2026 FHA, USDA & Conventional Loan Limits: Complete Comparison
Sarah Mitchell
VA & FHA Loan Specialist · NMLS #123456 · 14+ Years
Updated May 30, 2026 · 12 min read
⚡ Executive Summary — 2026 Loan Limits
- FHA Floor (most counties): $524,225 for single-family homes — 65% of the conventional conforming limit
- FHA Ceiling (high-cost areas): $1,209,750 — covers cities like San Francisco, NYC, Los Angeles, Boston
- Conventional Conforming (FHFA): $806,500 for single-family in standard counties — above this is a jumbo loan
- USDA Loan Limit: No maximum loan amount — limited by income (115% of AMI), DSCR, and property eligibility
- USDA Income Limit (2026): $103,500/year for a 1–4 person household (standard); up to $136,600 in high-cost areas
- Jumbo Loans: Required above $806,500 — needs 10–20% down, 700+ credit score, and full income documentation
- Multi-Unit FHA Limits: 2-unit: $671,200 · 3-unit: $811,275 · 4-unit: $1,008,300 (standard counties)
- Key Rule: FHA limits vary by county; always check HUD.gov for your specific area before applying
FHA vs USDA vs Conventional: 2026 Side-by-Side
The three primary government-backed and conforming loan programs have dramatically different limits and eligibility rules. Here is the definitive 2026 comparison.
| Criteria | 🏠 FHA | 🌾 USDA | 🏦 Conventional |
|---|---|---|---|
| Standard Loan Limit | $524,225 | No limit (income-based) | $806,500 |
| High-Cost Limit | $1,209,750 | N/A | $1,209,750 |
| Income Limit | None | $103,500 (1–4 person HH) | None |
| Min Down Payment | 3.5% (580+ credit) | 0% — $0 down | 3% (first-time); 5% otherwise |
| Min Credit Score | 580 (3.5% down) | 640 (most lenders) | 620 (standard) |
| Mortgage Insurance | Lifetime MIP (1.75% upfront + 0.55%/yr) | Annual fee: 0.35%/yr | PMI removable at 20% equity |
| Property Location | Anywhere in USA | Rural / suburban only | Anywhere in USA |
| Property Type | 1–4 units (owner-occupied) | Single family only | 1–4 units (1–2 owner-occ.) |
| DTI Limit | Up to 57% (compensating factors) | 41% back-end preferred | 45–50% with strong credit |
| Seller Concessions | Up to 6% of purchase price | Up to 6% of purchase price | 3% under $200K; 6% over |
| Loan Term | 15 or 30 years | 30 years only | 10, 15, 20, or 30 years |
| Rate Premium vs Conv. | +0.25–0.50% | +0.25–0.50% | Baseline rate |
| Best For | Low credit, low down payment | $0 down + rural/suburban buyers | Stronger credit, no MIP goal |
Sources: HUD Mortgagee Letter 2025-21, FHFA LLPA Matrix, USDA RD AN No. 5068. Rates and limits as of May 2026.
FHA Loan Limits 2026: By Unit Count & Area
FHA loan limits are set annually by HUD and vary by county based on local median home prices. There are two tiers — the floor (standard) and the ceiling (high-cost).
| Property Type | Standard Counties (Floor) | High-Cost Counties (Ceiling) | Alaska / Hawaii / USVI |
|---|---|---|---|
| 1-Unit (Single Family) | $524,225 | $1,209,750 | $1,814,625 |
| 2-Unit (Duplex) | $671,200 | $1,548,975 | $2,323,462 |
| 3-Unit (Triplex) | $811,275 | $1,872,225 | $2,808,337 |
| 4-Unit (Quadplex) | $1,008,300 | $2,326,875 | $3,490,312 |
San Francisco, CA
Maximum ceiling — highest-cost metro
$1,209,750
New York City, NY
All 5 boroughs at ceiling
$1,209,750
Los Angeles, CA
Entire LA county at max
$1,209,750
Denver, CO
High-cost but below ceiling
$833,750
Nashville, TN
Mid-tier high-cost county
$699,000
Columbus, OH
Standard floor applies
$524,225
USDA Income Limits 2026: The Key Eligibility Gate
USDA loans have no maximum loan amount, but they enforce strict income limits. Your household's gross income must not exceed 115% of the Area Median Income (AMI) for your county.
| Household Size | Standard Counties | High-Cost Counties |
|---|---|---|
| 1–4 persons | $103,500 | $136,600 |
| 5–8 persons | $136,600 | $180,300 |
🌾 USDA Property Eligibility (2026)
- • Property must be in a USDA-designated eligible rural or suburban area (check USDA eligibility map)
- • Must be a primary residence — no investment properties or vacation homes
- • Modest in size and value — no swimming pools or income-producing structures
- • Must meet HUD safety and soundness standards
- • Approximately 97% of U.S. land area is USDA-eligible — including many suburbs
Conventional Conforming Limits 2026
The FHFA sets the conventional conforming loan limit annually based on the national average home price change. The 2026 baseline limit is $806,500 — loans above this are jumbo and carry different rules.
| Loan Type | Baseline Limit | High-Cost Limit | Min Credit Score | Min Down |
|---|---|---|---|---|
| Conforming 30-yr Fixed | $806,500 | $1,209,750 | 620 | 3% |
| Conforming 15-yr Fixed | $806,500 | $1,209,750 | 620 | 3% |
| Conforming ARM (5/1, 7/1) | $806,500 | $1,209,750 | 640 | 5% |
| Jumbo (above conforming) | No limit | No limit | 700+ | 10–20% |
| HomeReady / Home Possible | $806,500 | $1,209,750 | 620 | 3% |
Which Loan Type Is Right for You in 2026?
Choose FHA If:
- ✅ Credit score is 580–619
- ✅ Down payment is 3.5%
- ✅ High debt-to-income ratio (up to 57%)
- ✅ Home price below $524,225 (most areas)
- ✅ Previous bankruptcy or foreclosure (>2 years)
Choose USDA If:
- ✅ You want $0 down payment
- ✅ Household income under $103,500/yr
- ✅ Buying in eligible rural/suburban area
- ✅ Credit score 640+
- ✅ Primary residence only
Choose Conventional If:
- ✅ Credit score 680+
- ✅ Can put 10–20% down
- ✅ Want to remove PMI eventually
- ✅ Buying in urban area (no USDA)
- ✅ Planning to put 20%+ down (no MIP)
Frequently Asked Questions
What are the FHA loan limits for 2026?
FHA loan limits for 2026: Standard (floor) limit is $524,225 for single-family homes in most U.S. counties. High-cost area limit (ceiling) is $1,209,750 for single-family in areas like San Francisco, New York City, and Los Angeles. Multi-unit properties have higher limits: 2-unit $671,200 standard / $1,548,975 high-cost; 3-unit $811,275 / $1,872,225; 4-unit $1,008,300 / $2,326,875. Alaska, Hawaii, Guam, and USVI have even higher ceilings.
What are the 2026 conventional conforming loan limits?
The 2026 conventional conforming loan limit set by the FHFA is $806,500 for single-family homes in most U.S. counties. High-cost areas (as defined by FHFA) can have limits up to $1,209,750. Loans above these limits are considered "jumbo" loans and require non-conforming lender financing, typically at slightly higher rates (0.25–0.50% above conforming).
Do USDA loans have a maximum loan amount in 2026?
USDA guaranteed loans do NOT have a set maximum loan amount in 2026. Instead, the loan is limited by your income and the home's appraised value — you must be able to repay based on standard debt-to-income ratios (41% back-end DTI preferred). However, USDA income limits DO apply: the household must earn no more than 115% of the area median income (AMI). For a family of 4, income limits are typically $103,500–$136,600 depending on your county.
What is the difference between FHA and conventional loan limits?
FHA loan limits and conventional conforming limits are set by different agencies using different formulas. In 2026, both share the same ceiling ($1,209,750) in high-cost areas, but FHA's floor ($524,225) is set at 65% of the conventional conforming limit ($806,500). Key practical differences: FHA requires only 3.5% down (580+ credit) vs conventional 3–20% (620+ credit). FHA charges lifetime MIP; conventional PMI can be removed. FHA has more flexible DTI ratios (up to 57% with compensating factors vs 45–50% conventional).
Can I get an FHA loan above the limit?
No — FHA strictly enforces loan limits. If the home price exceeds your county's FHA limit, you cannot use FHA financing regardless of your down payment. Your options: (1) Use a conventional conforming loan up to $806,500. (2) Use a jumbo loan above $806,500 — requires 10–20% down and 700+ credit. (3) Apply a larger down payment to bring the FHA loan amount below the limit. (4) Choose a less expensive property. Check your specific county limit at HUD.gov, as limits vary significantly by metro area.
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