FHA Loan Limits By County 2022
The Federal Housing Administration (FHA) offers mortgage insurance on loans aimed at low and moderate-income earners through FHA-approved lenders. In other words, FHA protects the lender if you default on your loan. It is important to understand that FHA does not provide the loans itself; it has a list of approved lenders which provide the loan while the FHA guarantees the loan, hence the name “FHA insured loans.”
They require a lower minimum down payment of 3.5% and a minimum credit score of 500, making them easier to qualify for than many conventional loans. FHA loans come in fixed and adjustable-rate mortgages with terms of 15 or 30 years. These factors make FHA loans a very attractive option for first-time homebuyers who do not have enough saved for a large down payment, have a low credit score, or have even been bankrupt in the past.
Check out your monthly mortgage payment with our FHA Loan Calculator.
FHA loans have limits and cannot be used for all loan amounts, the loan limit varies by county. The loan limit in 2022 range from $420,680 to $970,800. For example, the upper limit for FHA loans on single-family homes in Yukon–Koyukuk Census Area, Alaska is $420,680. Whereas, in San Francisco County, California the upper limit is $970,800. All FHA loan limits can be found on the Housing & Urban Developments website.
FHA Loan Limits by County
FHA loans are a type of mortgage backed by the government. They create the ability to buy a home with a low down payment and competitive interest rate. However, they have a maximum loan amount to prevent ballooning housing prices.
These limits are adjusted every year and vary by county. The limits are determined by the Department of Housing and Urban Development (HUD) and influenced by Fannie Mae and Freddie Mac. In most cases, the FHA loan limits are calculated as 65% of the regional conforming loan limit.
There are three categories of maximum FHA loan amounts; low-cost, high-cost, and designated areas. The first two categories are calculated by multiplying the county median home price by 115%. Throughout 2022, if the product is below $420,680, you live in a low-cost county. If the multiplication exceeds $420,680, you live in a high-cost area and have a larger standard mortgage limit.
To summarize, your maximum loan limit category is influenced by multiplying your median home price by 115% or living in designated areas.
However, you will fit the category of the designated area if you live in Alaska, Hawaii, Guam, or the Virgin Islands. These areas have an even larger mortgage limit for higher construction and purchase costs. Within each category, more factors influence your maximum loan amount.
| Low-Cost Area | High-Cost Area | Designated Area | |
|---|---|---|---|
| Qualifying Criteria | Median housing price x 1.15 is less than $420,680 | Median housing price x 1.15 is greater than $420,680 | Living in:
|
| Maximum Loan Amount (2022) |
|
|
|
| Low-Cost Area | High-Cost Area | Designated Area | |
|---|---|---|---|
| Qualifying Criteria | Median housing price x 1.15 is less than $420,680 | Median housing price x 1.15 is greater than $420,680 | Living in:
|
| Standard Maximum Loan Amount (2022 | $420,680 | $970,800 | $1,456,200 |
Low-Cost Areas
| One Unit | Two Units | Three Units | Four Units | |
|---|---|---|---|---|
| Maximum Loan Amount | $420,680 | $538,650 | $651,050 | $809,150 |
| Maximum Loan Amount | |
|---|---|
| One Unit | $420,680 |
| Two Units | $538,650 |
| Three Units | $651,050 |
| Four Units | $809,150 |
You live in a low-cost area if the median home price of your county multiplied by 1.15x is below $420,680. For example, if the median home price is $300,000, your multiple will be $345,000, which qualifies as a low-cost area.
Throughout 2022, your maximum standard mortgage amount will be $420,680. However, your maximum mortgage amount will increase depending on the number of units you purchase. For example, a four-unit mortgage will be larger than a two-unit mortgage. Both of these mortgages will have a larger limit than a single-unit building.
High-Cost Areas
| One Unit | Two Units | Three Units | Four Units | |
|---|---|---|---|---|
| Maximum Loan Amount | $970,800 | $1,243,050 | $1,502,475 | $1,867,275 |
| Maximum Loan Amount | |
|---|---|
| One Unit | $970,800 |
| Two Units | $1,243,050 |
| Three Units | $1,502,475 |
| Four Units | $1,867,275 |
You live in a high-cost area if the median home price multiplied by 1.15x exceeds $420,680. If your county median home price is $400,000, your product would be $460,000, exceeding the benchmark. As a result, you live in a high-cost area and would qualify for larger FHA mortgage limits.
The standard high-cost mortgage limit for 2022 is $970,800. However, the limit increases with the number of units you are purchasing. For example, if you're looking to buy a triplex, your maximum mortgage would be $1,502,475. The maximum amount of qualified units is four.
Designated Areas
| One Unit | Two Units | Three Units | Four Units | |
|---|---|---|---|---|
| Maximum Loan Amount | $1,456,200 | $1,864,575 | $2,253,700 | $2,800,900 |
| Maximum Loan Amount | |
|---|---|
| One Unit | $1,456,200 |
| Two Units | $1,864,575 |
| Three Units | $2,253,700 |
| Four Units | $2,800,900 |
Alaska, Hawaii, Guam, and the Virgin Islands have higher housing costs. As a result, their maximum FHA mortgage limits are even larger than in high-cost areas. The designated area maximum limits are typically calculated by multiplying high-cost areas by 1.50x.
However, living in these areas doesn’t automatically increase the maximum mortgage limit in each county. Your county-specific maximum limit will be determined by multiplying the median home price by 1.15x. The maximum allowable limit is just higher, meaning more expensive counties in designated areas have breathing room.
The 2022 standard limit for these areas is $1,456,200. Which again increases with the number of units you're looking to purchase. The table above defines the maximum mortgage amount for each number of units.
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