The U.S. Department of Housing and Urban Development (HUD) has announced a comprehensive increase in Federal Housing Administration (FHA) loan limits for 2026, a move aimed at mirroring the continued appreciation of home values across the country.
Effective for all FHA cases filed on or after Jan. 1, 2026, the new loan limits will see the floor for single-family homes rise to $541,287, up from $524,225 the previous year, while the ceiling will increase to $1,249,125.
The adjustments reflect the FHA’s statutory mandate to adjust loan limits annually based on changes in median home prices. By raising the limits, HUD aims to ensure that low- to moderate-income borrowers and first-time homebuyers are not priced out of FHA-insured financing in an increasingly competitive market.
The FHA sets its limits based on the conforming loan limits determined by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac. For 2026, the FHA floor is set at 65% of the national conforming loan limit of $832,750, while the ceiling for high-cost areas is set to 150% of that limit.
In counties that lie somewhere between the floor and the ceiling, the limit is set at 115% of the median home price for that specific area, ensuring that limits are tailored to local market conditions.
Multiunit properties will also see significant increases. For example, the loan limit for a four-unit property in a high-cost area will now exceed $2.4 million, providing substantial leverage to investors and owner-occupants of small multifamily buildings.
Alongside forward mortgages, HUD has also raised the maximum claim amount for home equity conversion mortgages (HECMs), a form of FHA-insured reverse mortgage intended for homeowners aged 62 and older.
The 2026 HECM limit will match the FHA’s high-cost area ceiling of $1,249,125 nationwide, regardless of the specific geographic area’s cost of living. This uniform limit simplifies the program and is intended to help seniors in higher-value homes access a larger portion of their home equity.
