FHA Loan Limits for 2018

See the Maximum FHA Loan Amounts for California, Arizona, Nevada, Oregon Washington, Hawaii and Utah on home mortgage loans insured by the FHA.

One of the most popular home loans today is the FHA loan. Backed by the US government's Federal Housing Administration, this is one of the most affordable and flexible ways to get a mortgage in America today. You likely have heard the advertisements on the radio about how now is the time to get a house and that may be true because FHA loan rates are back near record lows.

FHA guarantees the mortgage against default. In case the buyer does not pay the loan, FHA will pay back the lender a certain amount of the balance. This guarantee encourages lenders to issue FHA loans to buyers with lower credit scores and down payments. The FHA program really encourages home ownership in America today for those with less than perfect credit and a moderate income.

However, there are limits to the size of the loan that FHA will insure. Each year, FHA recalculates what the maximum loan is that it will insure against default. Because home prices are generally on the increase, this leads FHA to raise the limit, at least in recent years.

As of Jan. 1, 2018, the national conforming limit for FHA loans in regular cost areas across the country was $424,100. This is the limit for the typical parts of the United States with typical real estate costs.

Of course, there are other parts of the United States that have higher real estate and cost of living costs. For some of the more expensive areas of the US, such as San Diego and San Francisco in California, the limit for FHA loan programs is a lot higher.

For those types of higher cost areas, the maximum amount of loan that FHA will insure can be as high as $636,150. The exact maximum amount will depend up the particular county in California, but most of the counties containing and surrounding the biggest cities in California will have a higher maximum FHA loan amount. Find out if you are eligible for government incentives that reward homeowners taking out solar loans via the PACE financing program.

Let's take a closer look at the maximum conforming loan limits in California for some of the most populous counties:

Alameda: $636,150
Contra Costa: $636,150
Marin: $636,150
Monterey: $575,000
Orange: $636,150
San Benito: $636,150
San Francisco: $636,150
Santa Barbara: $636,150
Santa Clara: $636,150
Sonoma: $595,700
Ventura: $636,150

Here are the FHA loan limits for other more expensive states:

Hawaii (Honolulu): $721,050
Oregon (Columbia): $408,250
Arizona (Maricopa): $271,050
Nevada (Douglas): $362,250
Utah (Salt Lake): $300,300
Washington (Snohomish): $592,250

FHA Home Loans Helps Renters Become Homeowners with Affordable Housing Programs and Higher FHA Loan Amounts in 2017

Did you know that almost four out of 10 buyers today get a home loan that is backed by the FHA or Federal Housing Administration? This is a very popular loan program for millions of families across the country. HUD and Congress finally rose the FHA loan amounts (AKA loan limits) in 2017 and we have seen a significant spike in home buying nearly all 50 states.

FHA mortgages are insured by the US government. This simply means if the borrower fails to pay back the loan, if they default for any reason on their monthly payments, FHA will reimburse the lender up to a certain amount of the principal that is owed. This is typically 90% but can vary.

What does not vary is that the FHA guarantee of the loan makes it more likely that FHA lenders will approve you for the FHA loan amount you need. There is less risk for the lender to take on a loan from a family that may have a lower credit score, income or down payment.

Max Loan Amount for FHA Loans

For most parts of the country, the ceiling on the loan that the FHA will insure is $636,500. However, there are some areas of the US with higher costs of living that could go above $700,000. You should check with your specific FHA-approved lender for your area to determine what the maximum possible loan is.

The FHA loan is a great option for lower income Americans who have a lower credit score. Many people can qualify for an FHA insured loan with an affordable interest rate and down payment, but may not even be aware of it.

We recommend that you check with your lender to see if they offer FHA mortgages because you may well be able to get into your first home faster than you think!