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 2023 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 2023, the FHA floor was set at $472,030 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 |
|---|---|---|---|
| $472,030 | $604,400 | $730,525 | $907,900 |
Also for 2023, the FHA ceiling was set at $1,089,300 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 |
|---|---|---|---|
| $1,089,300 | $1,394,775 | $1,685,850 | $2,095,200 |
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
November 30, 2023 - In the last week of November 2023, the Federal Housing Administration and the Department of Housing and Urban Development issued FHA loan limits for 2024. There are different rates for single-unit homes all the way up to FHA loan limits for four-unit properties.
November 28, 2023 - What can a first-time homebuyer use an FHA mortgage to do? You can use it to build or buy a home. You can also use an FHA loan to renovate a home you already own or want to purchase and renovate. You can refinance and even apply for a reverse mortgage.
November 27, 2023 - Major career changes may make your lender reconsider your loan application until you have had enough time in the new job to prove your new income is likely to continue. Your lender typically needs at least 24 months as a self-employed person, freelancer, or new contact employee.
November 26, 2023 - The rate predictions covered here aren’t just for FHA mortgages, but FHA home loans are part of those observations. Business Insider repeats the Fannie Mae prediction for 2024 that rates may reside between 6.4% and 7.1% for 30-year fixed-rate conventional mortgages.
November 25, 2023 - The basic rule of thumb to know is the FHA policy for occupancy which requires at least one borrower obligated on the mortgage to take up residence in the home as the “primary residence” within a reasonable time of loan closing, typically 60 days.
November 24, 2023 - Want to build or improve a home with an FHA mortgage? Any home loan that involves construction or remodeling can be more complex than a standard FHA purchase loan or FHA refinance loan option.
November 23, 2023 - Most borrowers are told up front they cannot bring cash or checks to closing day. You must deliver payment to the lender in the form your loan officer requires. You won’t be able to make a down payment on an FHA mortgage in cash, and you typically can’t do it with a personal check.
November 21, 2023 - The lowest down payment possible for an FHA mortgage is 3.5% of the price of the home. But how much should you aim for when setting your budget to save up for that down payment?
The short answer is no. But why?
November 20, 2023 - Bloomberg Business News and other financial sites report that in the last quarter of 2023, mortgage rates and high house prices may hurt the home improvement industry, leading to higher costs to remodel your home with or without the help of an FHA rehab loan.
November 18, 2023 - At the time of this writing, the FHA and HUD have not announced the 2024 FHA loan limits that affect purchase loans, construction loans, refinance and renovation mortgages. FHA loans, like other government-backed home loans, feature an upper and lower loan limit.
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!
