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4 min read Apr 10, 2023

FHA Loan Limits: Everything You Need to Know in 2023

Are you planning to buy a home with a low down payment and a less-than-perfect credit score? If yes, then an FHA loan can be an excellent option.

Federal Housing Administration (FHA) loans are popular among first-time homebuyers, low-to-moderate-income borrowers, and those who have struggled to get approved for traditional mortgages.

However, these loans come with certain limits and guidelines you should know before applying. In this blog, we’ll discuss everything you need to know about FHA loan limits in 2023.

What is an FHA Loan Limit?

An FHA loan limit is the maximum amount of money that a borrower can borrow using an FHA loan. These limits are set by the Federal Housing Administration, a part of the Department of Housing and Urban Development (HUD).

The FHA loan limits vary by county and are based on the median home price in that area. In other words, the loan limit for a high-cost area will be higher than that of a low-cost area.

How do FHA Loans Work?

FHA loans make homeownership easily accessible to low-to-moderate-income borrowers. These loans have the backing of the federal government. This means that lenders are more willing to offer them to borrowers who might not qualify for conventional loans.

FHA loans also come with a mortgage insurance premium (MIP) that protects the lender if the borrower defaults on the loan.

FHA Loan Guidelines 2023

The FHA loan guidelines for 2023 will remain largely unchanged from the previous year;

  • The minimum credit score needed for an FHA loan will remain at 580, and borrowers with a credit score of 500 to 579 must put down at least 10%.
  • The maximum debt-to-income ratio (DTI) allowed for an FHA loan will remain at 43%, although some lenders may allow higher DTIs in certain cases.
  • The down payment requirement for an FHA loan will remain at 3.5%
  • The MIP will range from 0.45% to 1.05% of the loan amount, depending on the loan term and the loan-to-value (LTV) ratio.

What Determines the Maximum FHA Loan Limit?

The median home price in the area determines the maximum FHA loan limit. The FHA uses a formula to calculate the loan limit for each county based on the median home price.

In 2023, the FHA loan limit for a single-family home will range from $356,362 to $822,375, depending on the county. The loan limits for multi-unit properties (2-4 units) will be higher than those for single-family homes.

FHA Loan Limits for 2023

Let’s look at the newly set limits for FHA loans for different types of properties.

FHA loan limits in low-cost areas:


FHA loan limits in high-cost areas:



If you are looking for a low down payment mortgage and don’t have the best credit scores, an FHA loan can come to your rescue. However, it’s essential to be aware of the FHA loan limits in your area, as well as the guidelines and requirements that come with these loans.


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