💰 2026 FHA Loan Limits (NEW!)
🎉 Great News: Limits Increased for 2026!
FHA loan limits have increased for 2026, allowing you to borrow more with the same low down payment!
| Area Type | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| Floor (Low-Cost) | $541,288 | $693,000 | $837,700 | $1,041,050 |
| Ceiling (High-Cost) | $1,249,125 | $1,599,525 | $1,933,275 | $2,402,400 |
📍 Find Your County's Limit
Limits vary by county based on local home prices. High-cost areas like San Francisco, NYC, and LA have higher limits. Check your specific county limit with an FHA lender.Check your county limit
📊 FHA Credit Score Requirements 2026
✅ 580+ Credit Score
- • 3.5% down payment
- • Best FHA rates available
- • Easier approval process
- • More lender options
⚠️ 500-579 Credit Score
- • 10% down payment required
- • Higher interest rates
- • Fewer lender options
- • More documentation needed
💡 How to Improve Your Credit for FHA
Quick Wins (1-2 months):
- • Pay down credit card balances
- • Dispute errors on credit report
- • Become authorized user
- • Don't close old accounts
Long-term (3-6 months):
- • Pay all bills on time
- • Keep utilization under 30%
- • Avoid new credit applications
- • Build payment history
💵 FHA Down Payment Requirements 2026
Down Payment by Home Price
| Home Price | 3.5% Down (580+) | 10% Down (500-579) |
|---|---|---|
| $250,000 | $8,750 | $25,000 |
| $350,000 | $12,250 | $35,000 |
| $450,000 | $15,750 | $45,000 |
| $541,288 (Floor) | $18,945 | $54,129 |
🎁 Down Payment Assistance for FHA Loans
Can't afford 3.5% down? Down payment assistance programs can cover your entire down payment AND closing costs! Over $2.5 billion goes unclaimed every year.
- ✓ Grants (FREE money, never repaid)
- ✓ Forgivable loans (forgiven after 5-10 years)
- ✓ Works with FHA loans
- ✓ Available in all 50 states
📈 FHA Debt-to-Income (DTI) Requirements
Front-End DTI (Housing)
31%
Your monthly housing costs (mortgage, taxes, insurance, HOA) should be ≤31% of gross monthly income.
Back-End DTI (Total Debt)
43%
All monthly debts (housing + car + student loans + credit cards) should be ≤43% of gross income.
💡 Good News: Exceptions Exist!
With compensating factors (high credit score, large down payment, significant savings), FHA allows DTI up to 50% in some cases. Talk to an FHA lender about your options.Check your eligibility
🏦 FHA Mortgage Insurance Premium (MIP) 2026
FHA loans require mortgage insurance to protect lenders. There are two types:
Upfront MIP (UFMIP)
1.75%
One-time fee paid at closing. Can be rolled into your loan.
Example: $350,000 loan = $6,125 UFMIP
Annual MIP
0.55%
Paid monthly as part of your mortgage payment.
Example: $350,000 loan = ~$160/month
⚠️ Important: MIP Duration
For loans with less than 10% down, MIP lasts the life of the loan. With 10%+ down, MIP drops off after 11 years. To remove MIP earlier, you'd need to refinance into a conventional loan once you have 20% equity.
🏠 FHA Property Requirements 2026
✅ Eligible Property Types
- • Single-family homes
- • 2-4 unit properties (owner-occupied)
- • FHA-approved condos
- • Manufactured homes (permanent foundation)
- • Townhouses
- • New construction
📋 FHA Appraisal Requirements
FHA appraisals are stricter than conventional. The property must meet HUD's Minimum Property Standards:
- • Safe and sound structure
- • Working utilities (water, electric, HVAC)
- • No peeling paint (pre-1978 homes)
- • No safety hazards
- • Adequate roof condition
- • Proper drainage
❌ What Can Fail an FHA Appraisal
- • Peeling/chipping paint
- • Missing handrails
- • Broken windows
- • Roof damage
- • Foundation issues
- • Non-functional systems
📝 How to Apply for an FHA Loan in 2026
Check Your Credit Score
Get your free credit report at AnnualCreditReport.com. You need 580+ for 3.5% down.
Gather Documents
2 years tax returns, 2 months pay stubs, 2 months bank statements, W-2s, photo ID.
Compare FHA Lenders
Not all lenders offer FHA loans. Compare at least 3-5 FHA-approved lenders.Compare FHA lenders
Get Pre-Approved
Pre-approval shows sellers you're serious and locks in your rate.Get FHA pre-approved
Find Your Home & Close!
Make an offer, complete the FHA appraisal, and close on your new home!
❓ FHA Loan FAQ 2026
What credit score do I need for an FHA loan?
580+ for 3.5% down payment, or 500-579 with 10% down. Most lenders prefer 620+ for easier approval.
What are the 2026 FHA loan limits?
The floor is $541,288 for low-cost areas, and the ceiling is $1,249,125 for high-cost areas. Limits vary by county.
Can I use gift funds for my FHA down payment?
Yes! 100% of your down payment can come from gift funds from family members, employers, or down payment assistance programs.
How long does FHA MIP last?
With less than 10% down, MIP lasts the life of the loan. With 10%+ down, it drops off after 11 years.
🏠 Ready to Get Your FHA Loan?
Check your eligibility and compare FHA rates from top lenders. Get pre-approved in minutes!