FHA Loan Limits: How Much You Can Borrow and Why It Varies by County

Written by Samantha SheltonNMLS 1647301Updated September 2026

FHA loan limits are the maximum mortgage amounts the Federal Housing Administration will insure, and they vary by county. For 2026, the limit on a single-family home is $541,287 in most of the country, while designated high-cost areas run up to a ceiling of $1,249,125.¹ HUD set both figures in Mortgagee Letter 2025-23, and they apply to FHA case numbers assigned on or after January 1, 2026.

Those two numbers aren’t arbitrary. FHA pins its low-cost “floor” at 65% of the national conforming loan limit and its high-cost “ceiling” at 150% of it, and with the 2026 conforming limit at $832,750, the math lands on $541,287 and $1,249,125. Two- to four-unit properties get progressively higher caps. Most counties never leave the floor.

Learn what the 2026 FHA loan limits are for every property size, why your county’s limit is what it is, how FHA limits compare with conventional ones, and what to do when the home you want costs more. If you’re still weighing programs, start with our guide to loan types and programs.

Key takeaways:

• The 2026 floor is $541,287: That single-family limit applies in 2,794 of the 3,235 county records in HUD’s 2026 forward-limit file about 86% of the country, including every county in Michigan.
• More units, higher cap: At the floor, FHA insures up to $693,050 on a two-unit, $837,700 on a three-unit, and $1,041,125 on a four-unit property.
• The limit caps the loan, not the price: You can buy above your county’s cap by covering the gap in cash on a $575,000 home in a $541,287 county, that means about $33,713 down instead of FHA’s 3.5% minimum.

What are the 2026 FHA loan limits?

An FHA loan limit is the largest mortgage FHA will insure on a property of a given size in a given county, and for 2026 the single-family range runs from $541,287 to $1,249,125.² Every county in the country gets assigned a limit somewhere in that band. Nothing about the limit restricts what a home can sell for. It restricts what FHA will insure.

HUD publishes two national anchors and lets county median prices decide where each area lands between them. Here’s the full 2026 table.

Three things in that table are worth pulling out. The floor and ceiling are both derived from one number, the $832,750 national conforming limit, at 65% and 150% respectively. Multi-unit limits are fixed multiples of the one-unit figure, not separately negotiated. And Alaska, Hawaii, Guam and the U.S. Virgin Islands get a higher ceiling that FHA adjusts to account for higher construction costs.

These limits reset every calendar year and attach to your FHA case number, not your closing date. A file with a case number assigned in December 2025 lives under the old limits even if it closes in 2026. Our roundup of recent changes to FHA loan requirements tracks what else moves on the annual cycle, and our FHA loans overview covers the program itself.

Why do FHA loan limits vary by location?

Because they’re tied to local home prices. HUD calculates a county’s one-unit limit at 115% of that area’s median house price, then clamps the result to the national floor and ceiling. As HUD puts it, median prices “only directly determine the actual (1-unit) loan limits when the calculated limit (115% of the median price) is between the national ceiling and floor values.”

That clamping is why so much of the country sits at exactly $541,287. Work the formula backward: an area needs a median above roughly $470,700 before 115% of it clears the floor. Most counties don’t get there, so their calculated limit gets rounded up to the floor and they stop moving.

• Counties at the floor, 2,794 records: Median prices are low enough that 115% of the median falls below $541,287, so the floor applies.
• Counties between floor and ceiling, 379 records: These are genuinely priced off local medians, landing somewhere in the middle of the band.
• Counties at the ceiling, 62 records: Expensive metros where 115% of the median exceeds $1,249,125, so the cap binds.

Two mechanics change the answer for metro-area buyers. First, FHA sets limits by Metropolitan Statistical Area as well as by county, and within an MSA the limit is set using the county with the highest median price, so a modest county attached to an expensive metro inherits the expensive county’s limit. Second, the median prices HUD uses aren’t last month’s; they’re drawn from a high-price year in a lookback window, which is why limits lag a hot market rather than tracking it live.

Don’t estimate any of this. Look up the exact figure for your county with HUD’s FHA mortgage limits lookup tool, which returns the limit and the median sale price behind it for every state, county and MSA.

FHA vs. conventional loan limits

In most of the country, conventional conforming limits are substantially higher than FHA’s, $832,750 versus $541,287 on a single-family home in 2026, a gap of $291,463. This is the single most misunderstood point about FHA limits, and it trips up buyers who assume the two programs cap at the same place.

They only converge at the top. Because FHA’s ceiling is 150% of the conforming baseline and FHFA applies the same 150% multiplier to set its own high-cost ceiling, both programs stop at $1,249,125 in the most expensive counties.

A higher cap isn’t automatically the better loan. FHA’s appeal has never been loan size. It’s the down payment and credit flexibility, which is why plenty of buyers choose FHA well below the cap. Conventional financing tends to win when you need room above the FHA limit and can qualify for it. Our breakdown of conventional loans and what you need to know lays out that trade, and our FHA loan tips cover how to strengthen an FHA file.

Above $1,249,125 anywhere in the country, or above your county’s conforming limit, you’re into jumbo loan territory, where credit, reserve and down payment standards tighten considerably.

What if the home costs more than the limit?

You can still buy it with an FHA loan. You just have to cover the difference in cash. The limit caps the insured loan amount, not the purchase price, so any dollar of price above the cap has to come from your down payment rather than the mortgage.

Here’s the math in a standard-limit county. Say a home in Waterford is priced at $575,000, and Oakland County’s 2026 one-unit limit is $541,287. FHA’s minimum 3.5% down would be $20,125, leaving a $554,875 loan. About $13,588 above what FHA will insure. To use FHA financing, you’d need to put down $33,713, or roughly 5.9% of the price, landing the loan exactly at the cap.³

That’s a workable answer for some buyers and a dealbreaker for others. Three alternatives are worth pricing before you commit:

• Go conventional instead: With the conforming limit at $832,750 in standard counties, the same $575,000 purchase fits comfortably under a conventional loan, and low-down-payment conventional programs can require noticeably less cash than closing the FHA gap.
• Buy a multi-unit property: If you’re considering a duplex or fourplex you’ll occupy, the FHA cap rises to $693,050 and $1,041,125 respectively at the floor, substantially more room than the single-family number.
• Look at a lower price point or a fixer: An FHA 203(k) rehabilitation loan lets you finance the purchase and the renovation together, though the combined amount still has to fit under the same county limit.

One honest caveat, since it costs a broker nothing to say it: if you have the cash and credit to clear a conventional approval comfortably, the FHA limit question may be the wrong thing to solve for. Compare both structures on total cost, not just on which one technically fits.

What Michigan buyers should know

Michigan is a floor state, entirely. All 83 Michigan counties carry the 2026 low-cost limit, which makes the FHA cap one of the few mortgage variables a Michigan buyer almost never has to look up by county.

• Every county sits at $541,287: All 83 of Michigan’s counties are coded as standard-cost areas in HUD’s 2026 forward-limit file, from Wayne to Keweenaw. No Michigan county is a high-cost area, and none falls between the floor and the ceiling.
• The state’s priciest markets still don’t reach the cap: The highest median price HUD uses for a Michigan area in 2026 is $435,000, covering Benzie, Grand Traverse, Kalkaska and Leelanau counties. At 115%, that calculates to about $500,250. Still under the floor, which is why the floor applies.
• Metro Detroit runs well below the limit: All six Detroit-Warren-Dearborn MSA counties, Wayne, Oakland, Macomb, Livingston, St. Clair and Lapeer, carry a $362,000 median in HUD’s file, roughly $179,000 of headroom under the $541,287 cap. For most Metro Detroit buyers, the FHA limit simply isn’t the binding constraint.
• Duplex buyers get real room: Detroit-area two- to four-unit buyers can go to $693,050, $837,700 and $1,041,125, multiples that comfortably cover typical Michigan multi-unit price points, including owner-occupied duplexes.

FAQ: FHA loan limits

Here are answers to common questions about FHA loan limits.

What is the FHA loan limit for 2026?

For a single-family home, the 2026 FHA limit runs from a floor of $541,287 in most counties to a ceiling of $1,249,125 in designated high-cost areas, with higher special-exception limits in Alaska, Hawaii, Guam and the U.S. Virgin Islands. Two- to four-unit properties carry higher caps at every tier. HUD’s county lookup tool returns the exact figure for your area, and our FHA loans guide covers how the rest of the program works.

Can I buy a house that costs more than the FHA loan limit?

Yes. The limit caps the insured loan amount, not the home’s price. If your county’s limit is $541,287 and the home costs $600,000, you can still use FHA financing by making a down payment large enough to bring the loan under the cap. A conventional loan with its higher $832,750 conforming limit often fits better, and above that you’re looking at qualifying for a jumbo loan.

Why are FHA loan limits different in each county?

Limits are tied to local median home prices. HUD calculates each county’s cap at 115% of its median price, bounded by the national floor of $541,287 and ceiling of $1,249,125 in 2026. Expensive metros hit higher limits so FHA borrowers aren’t priced out, while most of the country stays at the floor. Limits reset every calendar year, and recent changes to FHA loan requirements tracks what else shifts annually.

Are FHA loan limits higher than conventional loan limits?

No, generally lower. The 2026 FHA floor is $541,287 versus the $832,750 baseline conforming limit for conventional loans, though both share the same $1,249,125 ceiling in the highest-cost areas. If you need to borrow more than your county’s FHA cap and can qualify conventionally, a conventional loan usually provides the extra room.

The bottom line on FHA loan limits

FHA loan limits cap what the Federal Housing Administration will insure, and for 2026 that’s $541,287 on a single-family home in most counties, rising to $1,249,125 in high-cost areas. HUD derives both from the $832,750 national conforming limit, 65% for the floor, 150% for the ceiling, and scales them upward for two-, three- and four-unit properties. Every Michigan county sits at the floor. And because the cap applies to the loan rather than the purchase price, a bigger down payment or a conventional loan will usually get you into a home priced above it.

If you’re ready to find out what your county’s limit means for your budget, talk to Align Lending, we’ll shop your scenario across our lender network and put FHA and conventional numbers in front of you side by side. Call 248-506-5727 or start online today.

Footnotes:

1. Align Lending is not acting on behalf of or at the direction of FHA or HUD. FHA loan limits are established by HUD, are effective for FHA case numbers assigned on or after January 1, 2026, and are subject to change. Return to text.

2. County-level limits vary within the national floor-to-ceiling range. Confirm the limit for your specific county and property size using HUD’s Maximum Mortgage Limits lookup tool before relying on any figure in this article. Return to text.

3. Example figures in this article are hypothetical and for educational purposes only; they do not constitute an advertisement of credit terms or a rate quote under federal or state lending laws. Your loan amount, down payment and terms will depend on your application, the property, program guidelines and market conditions. Return to text.

Figures current as of August 2026; verify with the linked source before relying on them. Sources: 2026 FHA national low-cost area (floor) limits of $541,287, $693,050, $837,700 and $1,041,125; high-cost area (ceiling) limits of $1,249,125, $1,599,375, $1,933,200 and $2,402,625; special exception limits for Alaska, Hawaii, Guam and the Virgin Islands of $1,873,625, $2,399,050, $2,899,800 and $3,603,925; the 65% and 150% derivation from the $832,750 national conforming limit; and the effective date for case numbers assigned on or after January 1, 2026, HUD Mortgagee Letter 2025-23, “2026 Nationwide Forward Mortgage Loan Limits,” December 11, 2025. FHA calculates forward mortgage limits from median house prices under the National Housing Act, sets limits by MSA and county, and sets MSA limits using the county with the highest median price within the MSA, same source. The 115%-of-median calculation and its clamping to the national floor and ceiling, and median prices drawn from the high-price year in the lookback window, HUD, FHA Mortgage Limits (entp.hud.gov). County counts at the floor (2,794), between floor and ceiling (379) and at the ceiling (62), and the status of all 83 Michigan counties as standard-cost areas with $435,000 and $362,000 area median prices, author tabulation of HUD’s CY2026 forward mortgage limits dataset (hud.gov/pub/chums). 2026 baseline conforming loan limit of $832,750, high-cost ceiling of $1,249,125, and the 3.26% increase over the 2025 baseline of $806,500, Federal Housing Finance Agency, Conforming Loan Limit Values for 2026. Two-, three- and four-unit 2026 conforming limits of $1,066,250, $1,288,800 and $1,601,750, HUD CY2026 GSE limits dataset. FHA down payments as low as 3.5% of the purchase price, U.S. Department of Housing and Urban Development. See also FHFA conforming loan limit values and HUD’s FHA loan overview.

This article is for informational purposes only and is not intended to provide legal, financial, or tax advice. Loan limits, program rules and qualification standards change and vary by county, property type and lender; confirm current figures with HUD and your Loan Estimate, and consult a qualified professional about your situation. Figures shown are illustrative, are not a rate quote or an offer of credit, and are subject to change. Align Lending is an independent Michigan mortgage broker, NMLS #2041154.

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