Great news for first-time homebuyers and other homebuyers who want to purchase a home with a lower down payment and credit score requirements. Starting January 1, 2023, the new FHA loan limit will be $472,030 for a single-family home in most parts of the country. In high-cost counties, borrowers can borrow even more!
In high-cost counties, including some in California, Colorado, Massachusetts, New Jersey, and Virginia, you can now use an FHA home loan to finance a home purchase up to $1,089,300 and still pay only 3.5% down payment with a minimum 580 credit score for one-unit homes.
The FHA also adjusted loan limits for properties purchased in Alaska, Hawaii, Guam, and the U.S. Virgin Islands to account for higher construction costs, so properties in these areas have a ceiling of $1,633,950 for a one-unit property.
The maximum FHA loan limits will rise in 3,222 counties and remain unchanged in 12 counties.
Click here to see the 2023 FHA loan limits for your county.
| Property Size Low-Cost Area “Floor” | High-Cost Area “Ceiling” | Alaska, Hawaii, Guam, U.S. Virgin Islands1 | |
| One Unit | $472,030 | $1,089,300 | $1,633,950 |
| Two Units | $604,400 | $1,394,775 | $2,092,150 |
| Three Units | $730,525 | $1,685,850 | $2,528,775 |
| Four Units | $907,900 | $2,095,200 | $3,142,800 |
1 Mortgage limits for the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands are adjusted by FHA to account for higher costs of construction. Source: HUD.gov
How does the FHA determine its home loan limit?
FHA is required by the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008 (HERA), to set Single Family forward loan limits at 115% of area median house prices. FHA calculates forward mortgage limits for a Metropolitan Statistical Area based on the county within the MSA having the highest median price.
The FHA sets its low-cost area mortgage limits at 65% of the national conforming loan limit, which is $726,200 for a one-unit property in 2023.
