FHA increases 2024 loan floor by more than $26,000

Strong national home price growth keeps agency’s loan limits on the rise

The Federal Housing Administration (FHA) announced increases to its loan limits for 2024, raising its loan floor next year to $498,257 for a one-unit property in most parts of the country.

That’s up from $472,030 in 2023, an increase of more than $26,000 that is driven by persistently strong home price growth nationwide over the course of the past year.

“The statutory loan limit increases announced today reflect the continued rise in home prices seen throughout most of the nation in 2023,” Federal Housing Commissioner Julia Gordon said. “The increases to FHA’s loan limits will enable homebuyers to use FHA’s low-downpayment financing to access homeownership at a time when a lack of affordability threatens to shut well-qualified borrowers out of the market.”

The FHA is mandated to set loan size limits each year by the National Housing Act (NHA), as amended by the Housing and Economic Recovery Act of 2008 (HERA). The NHA requires the FHA to set its limits based on the national conforming loan limit set by the Federal Housing Finance Agency (FHFA) for mortgages guaranteed by Fannie Mae and Freddie Mac. In 2024, the national conforming loan limit for a one-unit property is $766,550, and the FHA loan floor is set at 65% of the conforming loan limit.

The floor applies to so-called “low-cost” areas — counties where 115% of the median home price is less than the floor limit. Any area where that threshold is surpassed is deemed a “high-cost” area, meaning that varying loan limits above the floor for these areas are set by the FHA based on local median home prices.

The NHA also requires the FHA to set a maximum loan amount, or ceiling, of 150% of the national conforming loan limit for these high-cost areas. In 2024, the ceiling for a one-unit property is set at $1,149,825. Additionally, there are some areas where loan limits are determined differently due to factors such as construction costs. These include Alaska, Hawaii, the U.S. Virgin Islands and Guam; in these areas, the 2024 loan limit for a one-unit property is $1,724,725.

Maximum loan limits are set to rise in 3,138 counties nationwide, while another 96 counties will see no change. The new loan limits are effective for FHA case numbers assigned on or after Jan. 1, 2024.

The FHA has different limits for properties with two units or more. To find a complete list of FHA loan limits, visit FHA’s Loan Limits Page.


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