Housing News

Homebuyers May Be Afford More Home Next Year: FHA Loan Limits for 2026

Homebuyers using a Federal Housing Administration loan will soon be able to stretch their budgets a little further.

The 2026 loan limit for FHA loans is increasing 3.25% from 2025. That will allow qualifying buyers to stretch their budgets up to $541,287 for single-family homes in lower-cost housing markets, up from $524,225 in 2025.

“It’s good that the new loan limits offer more opportunities for buyers,” said Stephen Moye, a New American Funding sales manager in San Diego. “Having the loan limits increase helps people.”

In the most expensive markets, such as the San Francisco Bay Area, homebuyers may be able to borrow up to $1,249,125.

The new loan limits go into effect on Jan. 1, 2026.

FHA loans are popular with first-time and many other homebuyers because they’re often easier to qualify for than Conventional loans. Applicants may be able to secure an FHA loan with a lower credit score, a minimum of 500, and more debt than other types of mortgages.

Those with credit scores of at least 580 may be able to put down as little as 3.5% of the purchase price of the home. Those with lower scores generally must kick in 10% and generally must pay mortgage insurance for the life of the loan.

These loans aren’t just for single-family homes. Homebuyers may also use FHA loans to purchase duplexes, triplexes, and fourplexes.

FHA loan limits will rise in 2026 to $693,050 for two-unit properties in lower-cost counties and go up to $1,599,375 in the priciest communities.

Limits will increase to $837,700 and $1,041,125 respectively for three-unit and four-unit residences in more affordable areas in 2026. Buyers in the priciest markets may be able to borrow up to $1,933,200 and $2,402,625 respectively for these homes.

Loan limits vary by county, so make sure to speak to a loan officer who can help you determine how much home you can afford in your desired area.

Stephen Moye NMLS # 268619