FHA Loan Requirements
Whether you're a first-time homebuyer, moving to a new home, or want to refinance your existing conventional or FHA mortgage, the FHA loan program will let you purchase a home with a low down payment and flexible guidelines.
- The Facts About FHA Credit Requirements and FICO® Scores
- Do FHA Loan Requirements Apply to All Borrowers?
- Your FHA Loan Credit Qualifications
FHA Limits for 2024 Announced!
FHA loan limits were established to define how much you can borrow for a HUD-backed mortgage. Each state has different limits, so be sure to look up your state to understand what is available for your FHA home loan.
For 2024, the FHA floor was set at $498,257 for single-family home loans. This minimum lending amount covers most U.S. counties. The FHA ceiling represents the maximum loan amount and is illustrated in the table below.
| FHA Limits (low cost areas) | |||
| Single | Duplex | Tri-plex | Four-plex |
|---|---|---|---|
| $498,257 | $637,950 | $771,125 | $958,350 |
Also for 2024, the FHA ceiling was set at $1,149,825 for single-family home loans. This represents the highest amount that a borrower can get through the FHA loan program. It applies to high cost areas in the United States and is illustrated in the table below.
| FHA Limits (high cost areas) | |||
| Single | Duplex | Tri-plex | Four-plex |
|---|---|---|---|
| $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
Down Payment Grants for FHA Loans
Paying the upfront costs of buying a new home can be challenging. To help overcome this hurdle, many local and state agencies offer down payment assistance in the form of grants or second mortgages.
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FHA Loan Articles and Mortgage News
August 28, 2024 - FHA home loan options include manufactured homes and condo units, surprising some borrowers who assume FHA mortgages are only for traditional suburban houses. You can buy a condo unit with an FHA loan, but these transactions are a bit different.
August 27, 2024 - What are a borrower's options under the low down payment FHA home loan program? There are loans for condos, manufactured homes, and traditional suburban houses. Below, we examine some of the most utilized FHA loan options.
August 26, 2024 - Your FICO scores and loan repayment history play a major role in a lender’s decisions about loan approval interest rates. New borrowers face some challenges on the road to homeownership. We examine some key issues when planning your FHA purchase or refinance loan.
August 24, 2024 - There are two primary types of mortgage insurance: private mortgage insurance, sometimes known as conventional mortgage insurance or CMI for short, and Federal Housing Administration (FHA) mortgage insurance.
August 23, 2024 - The Federal Housing Administration has residential loans for those who need to buy and remodel a home, or improve an existing one. Which is right for you? There are certain benefits for these FHA loans compared to some of their conventional equivalents.
August 22, 2024 - Purchasing a home that needs some improvements or renovations can be a smart financial move, and FHA Rehab loans can help whether you’re buying a fixer-upper home or renovating the property you currently live in.
August 20, 2024 - One key difference is that FHA loans are insured by the Federal Housing Administration, which allows for more lenient credit score requirements. The government’s guarantee makes these loans less risky for the bank than a conventional mortgage without such a guarantee.
August 18, 2024 - The best credit advice for house hunters involves giving yourself plenty of prep time to improve your FICO scores and history of on-time payments. But what else do you need to know about fixing your credit before you apply for a mortgage?
August 17, 2024 - FHA cash-out refinance loans require a new credit check and appraisal, similar to the rules for an FHA new purchase loan. An appraisal is mandatory, and contesting the appraisal is not allowed unless there are deficiencies in the report or the work itself.
August 16, 2024 - There are cash-out FHA refinance loans and no-cash-out options. FHA refinance options without a cash-out feature can be valuable for homeowners seeking to lower their interest rates, shorten their loan terms, or switch from an adjustable to a fixed-rate mortgage.
Homebuyer Terminology
If you’re getting ready to shop around for mortgage options, it’s a good idea to brush up on some of the technical terms in our Mortgage Glossary. You’re going to be hearing a lot of them!
