FHA Loan Limits for 2025

FHA loan limits ensure borrowers don’t take on more debt than they can reasonably afford. On November 26, 2024, the Federal Housing Administration raised its FHA loan limits for 2025 following the National Housing Act (NHA) and the Federal National Mortgage Association (FHFA) to reflect the rise in home prices nationwide.

While the FHA sets new maximum loan limits every year to keep pace with changes in home prices, this year homebuyers can expect the loan limits for FHA mortgages to rise by more than $26,000 for floor limits and over $60,000 for ceiling limits in approximately 3,138 counties across the nation.

Those thinking of buying a home with an FHA loan in 2025 can use the current FHA loan limits as a guide to understand the impact FHA loan limits may have on their ability to finance a home.

What is an FHA loan limit?

An FHA loan limit or lending limit is the maximum mortgage amount the Federal Housing Administration (FHA) will insure for a single-family or multi-unit home. The limits are updated annually, as the NHA requires the FHA to calculate their new loan limits as a percentage of the conforming loan limits set by Fannie Mae and Freddie Mac.

Floor vs. ceiling limits

The FHA establishes “floor” and “ceiling” limits to reflect the average home prices in the various counties and states where the property is located. These limits also vary based on the property type, such as a single-family, duplex, triplex, or fourplex.

The floor: refers to the maximum mortgage limit for low-cost areas.

The ceiling: refers to the maximum mortgage limit for high-cost areas.

The FHA is legally required to set its loan limits at 115% of the median home sale price, which applies to both national floor and ceiling limits. Counties where the median home price exceeds 115% are considered high-cost areas. The FHA will adjust the loan limit above the floor to accommodate the local market.

2025 FHA loan limits 

As of November 26, 2024, FHA loan limits range from a floor limit of $524,225 to a ceiling limit of $1,209,750 for single-family homes. Since the FHA lending limits vary by area and property type, here’s a quick overview of the limits you can expect from FHA-approved lenders for the 2025 calendar year:

2025 HECM reverse mortgage limits

Reverse mortgages, or home equity conversion mortgages (HECMs) available to homeowners who are 62 years and older, also have their own FHA loan limits. In 2025, HECM loan limits increased to $1,209,750 for all eligible seniors. HECM loan limits also apply to all areas, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands. 

How are FHA loan limits determined?

FHA loan limits are calculated as a percentage of the FHFA’s loan limits based on the median house prices per state, county, and property type according to the House Price Index (HPI) report. The HPI tracks the average increases and decreases in home values over the prior year. 

The FHFA uses this information to establish the high-cost and low-cost area loan limits for conforming loans. From there, FHA calculates its loan limits as a percentage of the annual conforming loan limit amounts set by the FHFA, which is 65% for the floor limit in low-cost areas and 150% for the ceiling limit in high-cost areas.

For example, the conforming loan limit for a one-unit property in 2025 is $806,500. At 65%, the FHA’s floor limit for the same type of property in a low-cost area is $524,225. At 150% of the conforming loan limit, the FHA’s ceiling limit is $1,209,750 in high-cost areas. The only exceptions are Alaska, Hawaii, Guam, and the U.S. Virgin Islands, which have a ceiling limit of $1,814,625 for single-unit properties.

2025 FHA loan requirements

In addition to loan limits based on property type, FHA loans also have specific borrower eligibility requirements. While FHA loans have more flexible guidelines for borrowers than conforming loans, these guidelines vary by lender and may change over time. 

• Borrowers must have a credit score of at least 580 to make a minimum 3.5% down payment, and credit scores between 500 and 579 must make a down payment of 10%. 
• For FHA loans, your debt-to-income ratio (DTI) must not exceed the 43% limit to qualify for an FHA loan.
• While FHA lenders don’t require a minimum length of employment, they will want to verify your employment record and income history from the last two years, and they typically make exceptions to job gaps and changes if you can explain them. 

• Any home financed by an FHA lender must be a primary residence — borrowers cannot finance secondary homes and vacation homes with an FHA loan.
• FHA lenders also use an FHA-approved appraiser to assess a home’s value and ensure it meets safety and habitability standards, such as being located away from known flood hazard areas.

FHA loan limits inform you of the maximum mortgage amount you can qualify for with an FHA loan in 2025. They also serve as critical guidelines for the lenders evaluating your FHA loan eligibility. By becoming familiar with this information, you can better prepare for home buying and increase your chances of finding an eligible property to secure an FHA loan in 2025. 

If you’re currently shopping for a mortgage and are considering an FHA loan, compare loan types and see how much you pre-qualify to borrow with us at Zillow Home Loans.*

*An equal housing lender. NMLS ID#10287