The 2026 FHA loan limits for a one-unit home range from $541,287 in lower-cost counties to $1,249,125 in the highest-cost counties, according to HUD. The limit caps the base loan amount, meaning the mortgage before the upfront mortgage insurance premium (UFMIP) is added, so a financed premium can push the total loan above the published number. The limit applies to the loan, not the price, so a home can cost more than the limit if the down payment covers the difference.
Key takeaways
- For FHA case numbers assigned on or after January 1, 2026, the one-unit limit is $541,287 at the floor and $1,249,125 at the ceiling; two- to four-unit homes have higher limits.
- The limit is checked against the base loan amount. The 1.75% upfront premium may be financed on top of it.
- Closing costs are not what sits above the limit; the financed upfront premium is. A purchase loan is sized from value and the LTV cap, not from cash-to-close.
- Your county is the property's county, and HUD's lookup tool shows its exact number.
- As of November 4, 2026, HUD had not published 2027 limits; the 2026 figures remain the current ones.
The 2026 limits by unit count
HUD published the 2026 limits in Mortgagee Letter 2025-23 on December 11, 2025. They apply to FHA case numbers assigned on or after January 1, 2026. Outside Alaska, Hawaii, Guam and the Virgin Islands, each county's limit falls between a nationwide floor and a nationwide ceiling.
| Property type | Floor (lower-cost areas) | Ceiling (high-cost areas) |
|---|---|---|
| One unit | $541,287 | $1,249,125 |
| Two units | $693,050 | $1,599,375 |
| Three units | $837,700 | $1,933,200 |
| Four units | $1,041,125 | $2,402,625 |
Source for the table: Mortgagee Letter 2025-23, Handbook sections II.A.2.a.ii(B) and (C). Most counties sit at the floor. HUD's 2026 lists of higher-limit areas hold about 440 county entries: 62 at the ceiling and roughly 380 between the floor and the ceiling. A county that isn't on either list uses the floor.
Alaska, Hawaii, Guam and the Virgin Islands
The same letter sets a separate, higher ceiling for these four special exception areas, adjusted for higher construction costs: $1,873,625 for one unit, $2,399,050 for two units, $2,899,800 for three units and $3,603,925 for four units. That ceiling is a cap, not the local limit. On HUD's 2026 list of areas between the floor and the ceiling, the highest one-unit figure in these areas is $1,299,500 (Maui and Kalawao counties in Hawaii), above the standard $1,249,125 ceiling, while Honolulu County is $828,000.
Effective dates
Limits are published for each calendar year. A loan with an FHA case number assigned before January 1, 2026 is judged by the previous year's limits, and one assigned on or after that date by the 2026 limits. The lender requests the case number, so the contract date alone does not decide which table applies. These are forward mortgage limits. Reverse mortgages (HECMs) use a separate maximum claim amount, which HUD's lender page lists as $1,249,125 for all areas in 2026.
How the floor and ceiling are set
Both numbers come from the national conforming loan limit, which is $832,750 for one unit in 2026. The letter sets the floor at 65 percent of that figure and the ceiling at 150 percent. HUD describes the floor as applying where 115 percent of a county's median home price is below it, per its 2026 loan limit announcement.
floor = 65% × $832,750 = $541,287.50 → published as $541,287
ceiling = 150% × $832,750 = $1,249,125.00
- $832,750 is the 2026 national conforming limit for one unit, as quoted in the Mortgagee Letter.
- 65% and 150% are the shares that set the one-unit low-cost and high-cost limits.
In between, a county's limit follows local median prices. Within a metropolitan area, the letter says the limit is set using the county with the highest median price, so every county in that area shares one figure. HUD publishes lists of the areas at the ceiling and the areas between the floor and ceiling on its FHA lender page.
Base loan amount and upfront MIP
HUD's handbook glossary defines the Base Loan Amount as the mortgage amount before any financed upfront mortgage insurance premium. The same entry says that, unless the handbook states otherwise, every reference to the maximum mortgage amount means that base figure. The loan limit is checked against the base, so a premium financed on top of it can take the total mortgage above the published limit.
The UFMIP rate is 1.75 percent of the base loan amount for most FHA mortgages, per Appendix 1.0 as restated in Mortgagee Letter 2023-05. The exceptions are streamline and simple refinances of loans endorsed on or before May 31, 2009, Hawaiian Home Lands (Section 247) loans and Indian Lands (Section 248) loans. The premium can be paid in cash or rolled into the loan.
What this means for closing costs
The financed amount that sits above the limit is the premium, not closing costs. For a purchase, the handbook computes the maximum mortgage by applying the LTV percentage to the adjusted value, with a minimum required investment from the borrower, so a loan is not built by adding closing costs to the price. Title fees, lender charges, prepaid items and similar costs are generally paid from the borrower's funds or other permitted sources, and a lender can explain which ones apply to a specific file.
Worked example at the floor limit
Illustrative example, not a quote: a buyer signs a contract for $620,000 in a county where the one-unit limit is the $541,287 floor. A 3.5% down payment would leave a $598,300 loan, well above the cap. The base loan cannot exceed the limit, so the down payment has to cover the gap.
max base loan = county limit = $541,287
min down payment = price - max base loan = $620,000 - $541,287 = $78,713 (12.7% of price)
UFMIP (financed) = 1.75% × base loan = 0.0175 × $541,287 = $9,472.52
total mortgage = base loan + UFMIP = $541,287 + $9,472.52 = $550,759.52
- county limit is the HUD limit for the property's county.
- price is the lower of the sale price and appraised value in this example, assumed equal.
- UFMIP is the upfront premium; it is added after the base loan passes the limit test.
The result: a down payment of about $78,713, about 3.6 times the $21,700 that 3.5% of the price would be. The financed premium adds about $9,473 to the balance and does not count against the cap. Actual figures depend on appraised value, rounding rules and the lender's closing statement.
Down payment and credit score rules
HUD's glossary defines the minimum required investment as at least 3.5 percent of the property's adjusted value, and the handbook text restated in Mortgagee Letter 2026-11 sets the standard maximum LTV for an owner-occupant purchase at 96.5 percent. In the tables in Mortgagee Letter 2026-11, a minimum decision credit score of 580 or above qualifies for maximum financing, while a score of 500 to 579 limits a purchase to a 90 percent LTV, which implies at least 10 percent down. That letter changes how scores are chosen starting with case numbers assigned on or after January 1, 2027, and says the existing thresholds stay the same.
These are the program's minimums. A lender can set stricter requirements, and the loan limit still applies. When the price is above what the limit allows, the limit, not the 3.5 percent, decides the down payment, as the example shows.
Finding the limit for your county
Use HUD's FHA mortgage limits search to look up the limits for a state and county. The county is the one where the property sits, not where the borrower lives or the lender is based. HUD also provides downloadable county files and the lists of areas at the ceiling or between the floor and ceiling.
The Mortgagee Letter notes that FHA permits appeals to change high-cost area limits under its handbook's rules for local increases. For a refinance, HUD's Mortgagee Letter 2019-11 lowered the maximum LTV on cash-out refinances to 80 percent of adjusted value for case numbers assigned on or after September 1, 2019, so the loan limit is not the only cap. The same letter says the first mortgage plus any subordinate liens cannot exceed the loan limit. Confirm the current figure with the lender before relying on it.
Frequently asked questions
Can I buy a home that costs more than the FHA limit?
Yes. The limit applies to the base loan amount, not to the price. If the price is higher, the down payment has to make up the difference, as in the worked example, and the lender must still approve the borrower.
Does a financed UFMIP count toward the limit?
No. HUD's handbook glossary treats the Base Loan Amount as the amount before any financed UFMIP, and maximum mortgage amounts refer to that base. The financed premium can raise the total mortgage above the published limit.
Which county's limit applies?
The one for the property's location. HUD's limits are published by county and metropolitan area, and its lookup tool returns the figures for the county you select. HUD also lists 10 counties whose 2026 limit fell to the floor after metropolitan-area boundary changes, so a 2025 figure for a county can be out of date.
Do the limits cover refinances too?
FHA's forward mortgage limits apply to Title II forward mortgage programs, which include refinances. A cash-out refinance has an additional cap of 80 percent of adjusted value under Mortgagee Letter 2019-11, which can bind before the dollar limit does.
When will the 2027 limits be released?
As of November 4, 2026, HUD's FHA lender page still lists the 2026 limits and no 2027 letter was found. HUD published the 2026 letters on December 11, 2025, so 2027 limits, if they follow a similar pattern, would likely come in late 2026 or early 2027; that timing is an expectation, not a HUD commitment. Mortgagee Letter 2026-11 in October 2026 deals with credit score methodology, not loan limits.
Checklist before you make an offer
- Look up the property's county in HUD's search and note the one-unit or multi-unit figure.
- Subtract that limit from the expected price to see the minimum down payment, then compare it with 3.5 percent.
- Ask the lender for the base loan amount, the financed UFMIP and the total mortgage in writing.
- Ask which closing costs are covered by seller credits or the borrower's own funds.
- Re-check the numbers if the case number could be assigned across a year boundary.
This article is general education, not mortgage advice. A licensed loan officer can confirm how these rules apply to a specific loan.
Sources
- HUD Mortgagee Letter 2025-23, 2026 Nationwide Forward Mortgage Loan Limits (December 11, 2025)
- HUD, FHA announces 2026 loan limits
- HUD, FHA lender page with limit lists
- HUD, FHA 2026 areas at the ceiling (list)
- HUD, FHA 2026 areas above the floor and below the ceiling (list)
- HUD, CY2026 counties with loan limit decreases
- HUD, FHA mortgage limits search
- HUD Handbook 4000.1 glossary (Base Loan Amount, Minimum Required Investment)
- HUD Mortgagee Letter 2023-05 (Appendix 1.0, UFMIP and annual MIP)
- HUD Mortgagee Letter 2026-11 (credit score methodology and LTV tables)
- HUD Mortgagee Letter 2019-11 (cash-out refinance LTV)
