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FHA Loan Limits: How Much Can You Borrow In 2023?

Ashley Kilroy3-minute read

December 23, 2022

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There are a dozen and one things to think about before you buy a house. From researching the neighborhood to maintaining your credit to picking out the wallpaper – the list is endless. But one of the most important considerations is how to finance it all.

FHA loans offer an accessible mortgage to a wider range of people. They’re less restrictive than traditional alternatives, making it easier for people who struggle to get approval. But the amount you can borrow depends on the year and where you live. If you’re interested in an FHA loan, then you need to know the FHA loan limits for 2023. Let’s take a look at them.

How FHA Loan Limits Work

Not every future homeowner can find easy financing or qualify for a conventional loan. An FHA loan is a mortgage that is backed by the Federal Housing Administration, which operates under the Department of Housing and Urban Development. The FHA also insures these loans, meaning they protect your lender from loss in the case that you default on the loan.

Generally, FHA loans appeal to first-time home buyers and people with less than desirable credit since they offer low down payments and accept people with lower credit scores. However, you are required to pay mortgage insurance for them.

In addition, FHA loans come with maximum loan limits that cap how much you can borrow. The FHA uses two crucial factors to determine these limits: the property’s location (a low-cost area versus a high-cost area) and the type of property (single-family or multi-family).

While both FHA and conventional loans have limits, they are different. As of 2023, conventional loans for a one-unit family home have a $726,200 limit in the lower 48 states. Alaska, Hawaii and high-cost areas have a loan limit of $1,089,300.

The FHA’s low-cost area limits are set at 65% of the nation’s conforming limit for a one-unit property and 150% of the nation’s conforming cap for high-cost areas. That’s a low of $472,030 and a high of $1,089,300, respectively, for a one-family unit.

Find out if an FHA loan is right for you.

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FHA Loan Limits 2023

New loan limits are set on FHA loans every year, going into effect January 1. For the year 2023, the maximum FHA loan amount for high-cost metropolitan areas sits at $1,089,300, or drops to $472,030 in areas with lower housing costs. The limit applicable to you will depend on where your property is located. The high cost ceiling is also the one applying to Alaska and Hawaii.

In December 2022, the Department of Housing and Urban Development (HUD) announced that most U.S. counties would receive increases to their FHA loan limits. The Federal Housing Administration raised the loan limits in multiple counties due to the increases in home value nationwide. Although, there are some areas where limits remain the same.

FHA Maximum Loan Amounts In 2023

Below you will find the FHA loan limits for the 2023 year broken down into low-cost and high-cost areas. They are as follows:

FHA Maximum Loan Amounts

1-Unit Homes

2-Unit Homes

3-Unit Homes

4-Unit Homes

Low-Cost Areas

High-Cost Areas

Low-Cost Areas

High-Cost Areas

Low-Cost Areas

High-Cost Areas

Low-Cost Areas

High-Cost Areas

$472,030

$1,089,300

$604,400

$1,394,775

$730,525

$1,685,850

$907,900

$2,095,200

How To Find Your County’s FHA Loan Limits

While there are common limits, your own FHA loan limit may be different. That’s because FHA loan limits are set based on county property values, so they vary by location. To find the ceiling and floor in your county, you can search for it using HUD’s FHA mortgage limits page.

Can You Contest FHA Loan Limits?

According to the FHA, you can appeal an FHA loan limit in your area. Because the FHA reviews the loan limits at the end of each calendar year, you can make an appeal before the start of each new calendar year.

Requests for an appeal are handled by the FHA's Santa Ana Homeownership Center. They only grant requests in areas where HUD doesn't feel it had robust data. Requests can be sent to the following address before the end of the calendar year preceding the limits taking effect:

Attn: Program Support/Loan Limits
U.S. Department of Housing and Urban Development
Santa Ana Homeownership Center
Santa Ana Federal Building
34 Civic Center Plaza, Room 7015
Santa Ana, CA 92701-4003

The Bottom Line

The FHA loan limits vary between counties. Every year, the FHA reviews the limits and updates them if needed based on the changes in market conditions. So, 2023 saw its own FHA loan limit changes to accommodate the increases in home prices.

Every potential home buyer should know the limits they have to work with in their area while shopping for FHA loan options and lenders. If you’re ready to jumpstart the home buying process, you may also want to check out your available resources. Get started with Rocket Mortgage® today.

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Headshot Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is an experienced financial writer. In addition to being a contributing writer at Rocket Homes, she writes for solo entrepreneurs as well as for Fortune 500 companies. Ashley is a finance graduate of the University of Cincinnati. When she isn’t helping people understand their finances, you may find Ashley cage diving with great whites or on safari in South Africa.