FHA Loan Requirements
Whether you're a first-time homebuyer, moving to a new home, or want to refinance your existing conventional or FHA mortgage, the FHA loan program will let you purchase a home with a low down payment and flexible guidelines.
- The Facts About FHA Credit Requirements and FICO® Scores
- Do FHA Loan Requirements Apply to All Borrowers?
- Your FHA Loan Credit Qualifications
FHA Limits for 2023 Announced!
FHA loan limits were established to define how much you can borrow for a HUD-backed mortgage. Each state has different limits, so be sure to look up your state to understand what is available for your FHA home loan.
For 2023, the FHA floor was set at $472,030 for single-family home loans. This minimum lending amount covers most U.S. counties. The FHA ceiling represents the maximum loan amount and is illustrated in the table below.
| FHA Limits (low cost areas) | |||
| Single | Duplex | Tri-plex | Four-plex |
|---|---|---|---|
| $472,030 | $604,400 | $730,525 | $907,900 |
Also for 2023, the FHA ceiling was set at $1,089,300 for single-family home loans. This represents the highest amount that a borrower can get through the FHA loan program. It applies to high cost areas in the United States and is illustrated in the table below.
| FHA Limits (high cost areas) | |||
| Single | Duplex | Tri-plex | Four-plex |
|---|---|---|---|
| $1,089,300 | $1,394,775 | $1,685,850 | $2,095,200 |
Down Payment Grants for FHA Loans
Paying the upfront costs of buying a new home can be challenging. To help overcome this hurdle, many local and state agencies offer down payment assistance in the form of grants or second mortgages.
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FHA Loan Articles and Mortgage News
November 15, 2023 - What credit score do you need to buy a home? The answer might seem simple enough, but it can change depending on the type of home loan you seek and the options you want. You may have difficulty getting lender approval for a purchase loan with a FICO score below 580.
November 13, 2023 - The FHA and HUD feel these alterations will improve the valuation of these homes for borrowers seeking FHA-insured mortgages. These changes also contribute to FHA’s efforts to increase the availability and affordability of manufactured housing.
November 10, 2023 - CNBC and many other sources published headlines at the end of October and early November 2023 about the Fed's pause in its aggressive rate hike policy designed to curb inflation. Rate hikes started in March 2022.
November 8, 2023 - Many first-time homebuyers feel like they are playing catchup with terms, jargon, and best practices when searching for a home loan and a new place to live. One of the big challenges for a new borrower is finding the right lender.
November 7, 2023 - What can borrowers do to fight the cost of higher mortgage loan interest rates on the way to buying a home? In addition to down payment assistance, an adjustable rate mortgage, or lender help with closing costs, there’s another option.
November 6, 2023 - When mortgage rates rise, some lenders know they need to sweeten the deal to get customers to commit to a new home loan. An adjustable rate mortgage is one of those options, but it’s not the only one.
November 5, 2023 - There is stiff competition for some housing inventory depending on the market and a lot of buyer uncertainty. One real estate industry publication, Houwzer, has some great observations on what it takes to get ahead in the housing market as a potential buyer.houwzere
November 4, 2023 - If you must buy a home with today’s higher interest rates for FHA mortgages and other home loans, you may consider looking at a local down payment assistance program in your state. These programs can free up cash to be used in other areas for your home purchase.
November 3, 2023 - FHA loan rules require the lender to verify the borrower’s employment and income. This verification process can have different requirements depending on the nature of the applicant’s job. There are also different rules for the employees of family-owned businesses.
November 2, 2023 - If you want to buy a house with an FHA mortgage in today’s market, you may find that some homes have been modified to include an accessory dwelling unit or ADU. But what exactly IS an ADU, and why does it matter?
Homebuyer Terminology
If you’re getting ready to shop around for mortgage options, it’s a good idea to brush up on some of the technical terms in our Mortgage Glossary. You’re going to be hearing a lot of them!
