2018 FHA Mortgage Loan Limits

Nice house with a sold signThe FHA home loan is one of the easiest paths to homeownership. The FHA loan program was created during the 1930's to help low to moderate income individuals and families purchase homes with a low down payment, flexible credit requirements and reasonable closing costs.

The FHA loan program is open to first and non-first time home buyers and homeowners. The FHA loan is available to purchase a home (one to four units) and for refinance loans. Currently, the minimum credit score is as low as 500, however, applicants with a credit score under 580 requires a 10% minimum down payment. Home buyers with a credit score at or above 580 only need a 3.5% down payment.
Read more about the FHA loan program

Seller Paid Closing Costs

One of the necessary evils of purchasing a home are the closing costs. The home buying fees vary from state to state and even between state counties. Closing costs can be beyond reach of many home buyers, but with the FHA home loan program, the seller is permitted to pay a large percentage of the home buyer's closing costs. Read more about seller paid closing costs

Gift Money

All of the purchase costs can be "gifted" from an eligible donor. The typical donor is parent(s), grandparent(s), brother, sister or other close family member. You might be surprised to learn that a close friend who has a clearly defined and documented interest in the borrower can also gift the down payment and closing costs. The FHA loan program also permits grants to pay the costs.

Non-occupying co-borrowers and co-signers are allowed

There is a difference between non-occupying co-borrowers and co-signers. The non-occupying co-borrower(s) will not live in the home but will act as cosigners. Typically, cosigners will occupy the home. The benefit of the cosigner is to give the home buyer greater buying power or to simply improve the loan application. Needless to say, the cosigner should have a good credit rating and should be receiving monthly/annual income in excess of any debt obligations.
Read more about FHA cosigners

Income limits

There are no income limits with the FHA home loan.

Sales Price Limits

There are no sales price limits

Loan Limits

There are maximum loan limits with FHA home loans. The lending limit is set each year by the Federal Housing Finance Agency. The loan FHA loan limit is set loan limits at 115% of median house prices for the Metropolitan Statistical Area and county. Most US counties will have the following FHA lending limits for 2018:

1 Unit - $294,515
2 Units $352,950
3 Units $426,625
4 Units $530,150


The high cost counties receive a higher lending limit:

1 Unit - $679,650
2 Units - $814,500
3 Units - $984,525
4 Units - $1,223,475

2018 FHA High Cost County Limit Exceptions

The high cost county list contains the US counties that are at or greater then $679,650 for 2018 (one family). 2018 FHA loan limits in high cost counties (pdf)

2018 FHA Lower Cost County Limit Exceptions

The lower cost county list contains the US counties that are greater than $294,515 (typical limit for a one unit or single family residence). 2018 FHA loan limits in lower cost counties (pdf)

Reverse Mortgage Lending Limits

Senior citizensThe reverse mortgage loan program for senior citizens falls under the jurisdiction of the FHA. The reverse mortgage program is officially called the Home Equity Conversion Mortgages (HECM).

The maximum reverse mortgage loan limit for 2018 is $679,650. The single limit applies to all mortgages regardless of where the property is located.
Read more about reverse mortgages