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
October 1, 2023 - When you apply for an FHA mortgage loan, your lender is required to make sure you can afford the loan and your current amount of monthly debt. The loan officer will be required to calculate the amount of your financial obligations and compare it to your current income to determine approval eligibility.
September 30, 2023 - It is easy to assume an FHA mortgage is for single-unit homes only. Many first-time home buyers are looking for smaller properties, and the thought of using an FHA mortgage to buy a house with multiple living units might not occur to these buyers.
September 29, 2023 - There are no minimum or maximum income requirements for FHA home loans Rules do not say that it’s possible to earn too much to qualify for an FHA loan. Regarding minimums, regulations focus more on the borrower’s ability to afford the mortgage loan.
September 28, 2023 - There is plenty of advice on what to do before you apply for an FHA mortgage. You’ll need to save for your down payment, make a budget, and monitor your credit. But what about the things NOT to do before you apply?
September 27, 2023 - If you are a first-time home buyer looking for an affordable home loan, the FHA mortgage is an option worth exploring. Many borrowers have questions about FHA mortgages. Here are some of the most frequently asked questions and their answers.
September 26, 2023 - FHA loan rules have special requirements for home loan transactions that may be termed “identity of interest.” These transactions, which are sometimes allowed, are between parties with an existing business relationship or between family members.
September 25, 2023 - If you are new to buying or building a home, there are some important home loan terms to be aware of. Do you know what amortization is? Mortgage insurance? We examine some of the key terms here.
September 24, 2023 - What do you need to know about FHA loan limits? Some borrowers look at the loan limits, thinking that’s the total amount that the lender will offer them if the loan application is approved and expect to borrow that maximum amount.
September 23, 2023 - ABC News ran an article noting that some borrowers can get into a home loan with mortgage rates as low as three percent. How is this possible in an era where mortgage loan rates are at seven percent? What the article is talking about is the process of loan assumption.
September 22, 2023 - How do you know if you are being too hasty when applying for a home loan? We aren’t talking about whether or not you should buy a particular home or not, but rather whether you as a potential borrower have given yourself enough time to prepare for the application.
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!
