Homebuyers

FHA Loan Limits in 2025: What Homebuyers Need to Know

If you’re planning to buy a home with a Federal Housing Administration (FHA) loan in 2025, there’s good news: You might be able to borrow more this year.

Thanks to rising home prices, the FHA has increased its loan limits for 2025. This provides homebuyers in many parts of the country with more options.

“The new, higher 2025 FHA loan limits are great news for first-time homebuyers,” said Ray Williams, EVP Consumer Direct Division at New American Funding. “They can now afford homes in higher-priced areas that were previously out of reach.”

So, how much can you borrow with one of these government-backed loans?

The baseline limit for FHA loans in 2025 is $524,225 for a single-family home. That’s the maximum FHA loan amount allowed in most counties across the country.

The FHA loan limit for 2025 rose more than $25,000 from the 2024 limit of $498,257, giving homebuyers more buying power this year.

If you live in a more expensive market, you might qualify for a larger loan.

In high-cost areas, such as parts of California, New York, and Washington, D.C., the FHA limit can reach up to $1,209,750. That’s nearly $60,000 above the 2024 “high-cost” loan limit of $1,149,825.

It’s also a substantial increase over the baseline limit, reflecting how costly homebuying has become in these regions.

FHA loan limits also rise if you are interested in buying a multifamily property. These are properties with more than one unit, such as a duplex or triplex. Here’s how that math breaks down:

• Two units: up to $1,548,975
• Three units: up to $1,872,225
• Four units: up to $2,326,875

Buyers can use these new loan limits to see if they qualify for an FHA loan and how much they can borrow.

These loans have long been popular with first-time and other buyers on a budget, because buyers may only need to put down 3.5% of the sale price of the home.

Those with lower credit scores, who may not be able to qualify for other types of mortgages, may also be able to get an FHA loan in certain circumstances.

“With flexible credit score guidelines, more buyers can qualify, even without perfect credit,” said Williams.

Indeed, these loans can provide an important route to homeownership. Just keep in mind that you’ll still need to qualify based on your income, debts, and the home’s appraised value. And limits vary by county, so be sure to check the specific cap in the areas where you're shopping.

You can look up the local FHA loan limit by ZIP code at HUD.gov or work with your loan officer to figure out how much you may be able to borrow.

“Overall, the increased limits help first-time buyers stay competitive in today’s rising market without overextending financially,” said Williams.