💰 FHA Loan Limits 2025: NEW Limits Up to $806,500 | Complete County Guide
🚨 UPDATED August 2025: HUD just announced the NEW FHA loan limits! Discover your county's maximum loan amount and get pre-approved with just 3.5% down payment.
BREAKING: 2025 FHA Loan Limits Just Announced!
HUD officially released the 2025 FHA loan limits on November 15, 2024. The new limits take effect January 1, 2025, with significant increases in high-cost areas to help more families achieve homeownership.
Key Changes for 2025:
- Base limit increased to $498,257 (up from $472,030 in 2024)
- High-cost ceiling remains at $806,500
- Average increase of 5.6% across most counties
- Over 200 counties saw limit increases
What Are FHA Loan Limits? (2025 Complete Explanation)
FHA loan limits are the maximum loan amounts that the Federal Housing Administration will insure in each county across the United States. These limits are updated annually based on local median home prices and are designed to help homebuyers access affordable financing in their specific markets.
🎯 How FHA Limits Work in Practice
Example 1: Low-Cost Area (Rural Kansas)
- • 2025 FHA Limit: $498,257
- • Median Home Price: $180,000
- • ✅ FHA loan available for most homes
Example 2: High-Cost Area (San Francisco, CA)
- • 2025 FHA Limit: $806,500
- • Median Home Price: $1,400,000
- • ⚠️ FHA limited to condos/lower-priced homes
2025 FHA Loan Limits by State (Top 20 Markets)
Highest FHA Limits (High-Cost Areas)
Base Limit States ($498,257)
How Are 2025 FHA Loan Limits Calculated?
Step 1: Conforming Loan Limit Foundation
FHA limits are based on conforming loan limits set by the Federal Housing Finance Agency (FHFA). For 2025:
- Base conforming limit: $806,500 (up from $766,550 in 2024)
- FHA floor: 65% of conforming limit = $498,257
- FHA ceiling: 100% of conforming limit = $806,500
Step 2: Local Median Home Price Analysis
HUD analyzes each county's median home prices to determine the appropriate limit:
- Low-cost areas: Median price below national average = $498,257 limit
- High-cost areas: Median price 115%+ of national average = Higher limits up to $806,500
- Special exceptions: Alaska, Hawaii, Guam, Virgin Islands get 150% multiplier
Step 3: Annual Adjustment Process
Limits are updated annually based on:
- House Price Index (HPI) changes from FHFA
- Local market appreciation rates
- Median sales price trends
- Economic conditions and affordability factors
FHA vs. Conventional Loan Limits 2025
🏠 FHA Loan Limits 2025
- Base Limit (Most Areas)$498,257
- High-Cost Maximum$806,500
- Down Payment3.5%
- Credit Score Min580
- Mortgage InsuranceRequired
🏦 Conventional Loan Limits 2025
- Base Limit (Most Areas)$806,500
- High-Cost Maximum$1,209,750
- Down Payment5-20%
- Credit Score Min620
- Mortgage InsuranceRemovable
💡 FHA Winner: Lower down payment & credit scores | Conventional Winner: Higher loan limits & removable PMI
2025 FHA Limits for Multi-Unit Properties
FHA loans aren't just for single-family homes! You can use FHA financing for 2-4 unit properties with higher loan limits. Here are the 2025 multipliers:
Base Limit Areas ($498,257)
High-Cost Areas ($806,500)
💡 Multi-Unit FHA Requirements
- You must live in one of the units as your primary residence
- Same 3.5% down payment applies to the entire purchase price
- Rental income from other units can help you qualify
- Property must meet FHA safety and habitability standards
- All units must be residential (no commercial use)
FHA Loan Limits 2025: Frequently Asked Questions
When do the 2025 FHA loan limits take effect?
The new 2025 FHA loan limits officially take effect on January 1, 2025. Any loan application submitted after this date will use the new limits.
What if I'm already pre-approved with 2024 limits?
If you're already pre-approved but haven't closed yet, you may be able to benefit from the higher 2025 limits if they apply to your area. Contact your lender to discuss updating your pre-approval.
Can I get an FHA loan above the county limit?
No, FHA loans cannot exceed the established county limits. If you need financing above the FHA limit, you'll need to consider conventional loans, jumbo loans, or look at properties within the FHA limit range.
Do FHA limits apply to refinancing too?
Yes, FHA loan limits apply to both purchase loans and refinancing. However, there are some exceptions for FHA Streamline Refinances of existing FHA loans.
How often do FHA limits change?
FHA loan limits are updated annually, typically announced in November for the following year. The limits are based on changes in local home prices and conforming loan limits.
What happens if home prices drop in my area?
FHA limits generally don't decrease year-over-year, even if local home prices decline. HUD typically maintains limits at previous levels to ensure continued access to FHA financing.
Ready to Use the NEW 2025 FHA Loan Limits?
Take advantage of the increased FHA loan limits and get pre-approved today with just 3.5% down payment. Our expert lenders will help you maximize your buying power!
⚡ Free consultation • No obligation • Expert guidance • Same-day pre-approval