How Increased FHA Loan Limits Benefit First-time Homebuyers in 2024

a Great news for first-time homebuyers who want to purchase a home with a lower down payment and credit score requirements. Starting January 1, 2024, the new FHA floor loan limit will be $498,257 for a single-family home in most parts of the country.

In high-cost areas, including some counties in California, Colorado, DC, Idaho, Massachusetts, Maryland, New Jersey, Utah and Virginia, you can now use an FHA home loan to finance a home purchase up to $1,149,825 – that’s the mortgage amount not sales price – and with only 3.5% down payment and 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 $1,724,725 for a one-unit property.

“The increases to FHA’s loan limits will enable homebuyers to use FHA’s low-down-payment financing to access homeownership at a time when a lack of affordability threatens to shut well qualified borrowers out of the market,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon.

The FHA loan limits will rise in 3,138 counties and remain unchanged in 96 counties.

Click here to see the 2024 FHA loan limits for your county.

2024 FHA Loan Limits for Multi-Unit Properties

Property Size Low-Cost Area “Floor” High-Cost Area “Ceiling” 1Alaska, Hawaii, Guam, U.S. Virgin Islands
One Unit $498,257 $1,149,825 $1,724,725
Two Units $637,950 $1,472,250 $2,208,375
Three Units $771,125 $1,779,525 $2,669,275
Four Units $958,350 $2,211,600 $3,317,400


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:

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 $766,550 for a one-unit property in 2024.

The National Housing Act requires FHA to set its maximum loan limit ceiling for high-cost areas at $1,149,825, which is 150% of the national conforming loan limit. Forward mortgage limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands are adjusted further by FHA to account for higher costs of construction.

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