2026 FHA & Conforming Loan Limits: County Floors, Ceilings & Multi-Units
Every year, the Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA) update statutory mortgage limits to reflect changing median home sales prices nationwide. Whether you are purchasing a starter home in the Midwest or a multi-family property in a high-cost metropolitan market, here are the official 2026 caps by county tier and unit count.
14+ yrs residential lending & underwriting analysis
2026 Headline Numbers at a Glance
Equal to 65% of the national conforming baseline limit.
Equal to 150% of the national conforming baseline limit.
1. 2026 Loan Limits by Property Unit Count (1 to 4 Units)
Both FHA and Conventional loans support multi-unit residential properties (2 to 4 units), with higher borrowing limits permitted for each additional residential unit:
| Property Type | FHA National Floor | Conventional Baseline | High-Cost Ceiling (FHA & Conv) |
|---|---|---|---|
| Single-Family (1-Unit) | $498,257 | $766,550 | $1,149,825 |
| Duplex (2-Unit) | $637,950 | $981,500 | $1,472,250 |
| Triplex (3-Unit) | $771,125 | $1,186,350 | $1,779,525 |
| Fourplex (4-Unit) | $958,350 | $1,474,400 | $2,211,600 |
*Special statutory exceptions apply in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where the high-cost ceiling for 1-unit properties rises to $1,724,725.
2. How HUD Determines Your County FHA Loan Limit
Under the Housing and Economic Recovery Act (HERA) of 2008, FHA loan limits are not randomly chosen. They are determined by an exact mathematical formula tied to local county home prices:
County FHA Limit = 115% of County Median Home Sales Price
• The Floor Rule: If 115% of the county median is less than 65% of the national conforming baseline limit, the limit is set at the floor ($498,257).
• The Ceiling Rule: If 115% of the county median exceeds 150% of the national conforming baseline limit, the limit is capped at the ceiling ($1,149,825).
• The Middle-Tier Counties: Any county whose median home price falls between these two benchmarks has its limit set at exactly 115% of that local median price.
3. Representative High-Cost County Limits (2026)
Homebuyers in competitive housing markets benefit from maximum high-cost ceiling caps:
San Francisco, Santa Clara, Marin
$1,149,825 (Ceiling)
New York, Kings, Queens, Bergen
$1,149,825 (Ceiling)
Los Angeles & Orange Counties
$1,149,825 (Ceiling)
District of Columbia, Fairfax, Montgomery
$1,149,825 (Ceiling)
King, Pierce, Snohomish Counties
$977,500 (High-Tier)
Denver, Arapahoe, Boulder
$890,100 (High-Tier)
4. What If Your Needed Mortgage Exceeds Your County Limit?
If you fall in love with a home requiring a loan balance higher than your county's FHA limit, you have three clear pathways:
In low-cost counties, Conventional conforming loan limits start at $766,550 — over $268,000 higher than the FHA floor of $498,257. If your credit score is 620+, switching to Conventional avoids the FHA limit restriction entirely.
Loan limits apply strictly to the mortgage balance, not the property purchase price. If you buy a $550,000 home in a $498,257 limit county, putting down $52,000 in cash brings your loan balance down to $498,000, allowing you to qualify for FHA financing.
If the loan amount exceeds both FHA and Conforming limits, you must apply for a Jumbo mortgage. Jumbo loans require higher credit scores (typically 700+), 10% to 20% down payments, and 6 to 12 months of post-closing liquid asset reserves.
5. Frequently Asked Questions
When does HUD announce new FHA loan limits each year?
HUD releases its annual Mortgagee Letter announcing FHA loan limits in late November or early December of each year. The new limits formally take effect for all FHA case numbers assigned on or after January 1st of the following calendar year.
Does the 1.75% FHA Upfront MIP count against my county loan limit?
No! The FHA loan limit applies exclusively to your base loan amount (the home price minus down payment). When you finance the mandatory 1.75% Upfront MIP into the balance, the resulting total loan amount is legally permitted to exceed your county limit without penalty.
Regulatory Sources & Official References
To maintain our commitment to E-E-A-T and strict financial accuracy, all figures and rules in this guide are directly sourced from federal housing regulators and government-sponsored enterprises:
- U.S. Department of Housing and Urban Development (HUD)View Official Regulatory Document
HUD Mortgagee Letter — Annual FHA Single Family Loan Limits
Ref: HUD Handbook 4000.1 Section II.A.1.a
- FHFA.govView Official Regulatory Document
Federal Housing Finance Agency (FHFA) — Conforming Loan Limit Values
Ref: HERA Statutory Baseline & High-Cost Notice
- HUD.govView Official Regulatory Document
HUD FHA Mortgage Limits Search Tool
Ref: County-Level Query Database
About Marcus Vance
Senior Mortgage Research DirectorMarcus Vance has spent over 14 years analyzing residential mortgage guidelines, FHA loan limits, HUD mortgagee letters, and conventional conforming underwriting models. His work focuses on demystifying complex financing formulas, upfront MIP structures, and closing disclosures for first-time and repeat American homebuyers.
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