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 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 , 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
March 14, 2024 - Some loan types allow you to pay 20% down to avoid mortgage insurance altogether. Other loan types may allow you to make a larger down payment and stop paying mortgage insurance after 11 years. Other loans have no program-required mortgage insurance guidelines at all.
March 13, 2024 - FHA home loan down payments are typically lower than many conventional mortgage equivalents, especially if you can’t afford the 20% down needed to avoid conventional private mortgage insurance, which is required on a conventional mortgage.
March 12, 2024 - Some want to build a home from the ground up, and that job requires an FHA One-Time Close construction loan. Others want to renovate an existing home using an FHA rehabilitation mortgage or its refinance equivalent.
March 10, 2024 - Roughly 20 million Americans have purchased manufactured housing, and most government-backed mortgage loan programs offer some type of home loan for these borrowers. That includes the FHA, which offers these types of home loans.
March 8, 2024 - FHA loans, in particular, have benefitted from the early attempts at a housing recovery in today’s market. CNBC said purchase volume – particularly for FHA loans – was up strongly in week-to-week comparisons.
March 7, 2024 - FHA home loans have some options common to all government-backed mortgages and some unique features. USDA loans may not be approved for “income-producing” properties. But is that also true of FHA mortgages?
March 5, 2024 - Some borrowers anticipate wanting to refinance later, and some don’t. But going forward it may be wise not to skip thinking about a refinance loan when the rates are still elevated. Plan, budget, and save with this in mind.
March 4, 2024 - If you want to build a house from the ground up using an FHA One-Time Close construction loan, you should research your options to ensure you’re making the right choice for the right project. Do you need an owner-builder loan, a renovation loan, or a construction-only loan?
March 3, 2024 - Whether you buy a home using an FHA mortgage or any other loan type, you must contend with closing costs, the down payment, and negotiate an interest rate with your lender. For newcomers, those two issues sound completely separate.
March 2, 2024 - Prices for home loan services are not standardized across the nation. Your local housing market’s trends will partly influence the cost of your loan, as will your financial data, such as FICO scores and loan repayment history. What can affect how much these services cost?
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!