FHA Loan Limits for 2021
The goal of the Federal Housing Administration is to make sure home buyers can finance a modest home with the benefits of an FHA loan. FHA loan limits exist because FHA loans were not intended to be used to finance high priced luxury homes. Use our FHA loan limits lookup tool below to see what the loan limits are in your area.
FHA Loan Limits for 2021 increased to a base of $356,362 due to an overall increase in home values for the prior year. The FHA limit for high cost areas also increased to $822,375 for a single family home.
Standard FHA Loan Limits for 2021
These are the standard FHA loan limits for most counties in the United States. We recommend using the FHA loan limit lookup tool below to see if the loan limits in your county are higher than the base limits referenced here.
Standard FHA Loan Limits
FHA Loan Limits for High Cost Areas
The FHA recognizes that a moderately priced home will not cost the same everywhere in the United States. For example, a typical 3 bedroom home will likely cost 5 times as much in Southern California as it would in rural towns in middle America.
It is for this reason why the FHA has set specific loan limits for high cost areas in the United States. The base FHA loan limit in a high cost area for a single family residence is $822,375.
The FHA loan limits lookup tool below will let you know what the maximum loan amount is for an FHA loan in your county. The limits are higher for multi-family residences as they are for single family homes.
High Cost Area FHA Loan Limits
Why has the FHA Set Loan Limits?
FHA loan limits exist because the intent is not to fund the purchase of a luxury home with an FHA loan while making sure home buyers can finance a modest home in their county.
How Does the FHA Decide What the Loan Limits are?
The FHA reviews home sales data for each county in the 4th quarter of a given year. If they see median home sales have increased, they will proportionately increase the FHA loan limits for that county.
Why does the FHA increase the loan limits?
The loan limits are increased to make sure homeowners can afford an average priced home in their geography. If home prices continued to climb while the FHA loan limits remained the same, home buyers may not have the ability to afford homes in their local area.
The current FHA Loan Limits by County for 2021
The FHA loan limits vary for each county and are set to meet the average median home cost in each area. This FHA Loan limit listing below will be kept updated so you may bookmark the page for future reference.
Official FHA Loan Limits Lookup Tool – same data as our tool