Summary: The 2022 FHA loan limits for home purchases will range from $420,680 to $970,800, depending on the county where the property is located. In remote areas like Alaska, Hawaii, Guam and the Virgin Islands, the 2022 FHA loan limit is set at $1,456,200. This applies to loans with case numbers assigned on or after January 1, 2022.
The above figures apply to a one-unit (single-family) home. Higher limits apply for multi-family residences, such as duplexes and triplexes. You can find the caps for your county by visiting https://entp.hud.gov/idapp/html/hicostlook.cfm.
On November 30, 2021, the Department of Housing and Urban Development (HUD) announced that they were increasing FHA loan limits for purchase mortgages in 2022. This page has been fully updated to reflect those changes.
In high-cost areas across the United States, FHA’s loan limit “ceiling” for single-family properties was increased to $970,800 for 2022. The housing agency also increased its “floor” to $420,680. These changes are the result of rising home values nationwide.
Overview of 2022 FHA Loan Limits
Below you will find the 2022 FHA loan limits for low-cost areas, high-cost areas, and special exceptions for areas like Alaska and Hawaii with expensive construction costs. These figures apply to purchase loans, specifically.
The FHA’s national low-cost area mortgage limits for 2022 are set at 65% of the national conforming limit of $647,200 (for a one-unit property). Here are the specific amounts for this category, by property type:
- One-unit: $420,680
- Two-unit: $538,650
- Three-unit: $651,050
- Four-unit: $809,150
The FHA’s loan limits for high-cost areas (with comparatively high home prices) are set at 150% of the national conforming cap of $647,200. This results in the following maximum mortgage amounts:
- One-unit: $970,800
- Two-unit: $1,243,050
- Three-unit: $1,502,475
- Four-unit: $1,867,275
Alaska, Hawaii, Guam, and the Virgin Islands
“Special exception” areas are places that have higher construction costs. These areas include Alaska, Hawaii, Guam, and the Virgin Islands. In 2022, these four special-exception areas have a higher FHA loan limit ceiling, as shown below:
- One-unit: $1,456,200
- Two-unit: $1,864,575
- Three-unit: $2,253,700
- Four-unit: $2,800,900
The ‘Floor’ and ‘Ceiling’ Lending Caps
According to the Department of Housing and Urban Development, the maximum FHA lending amount for high-cost metropolitan areas rose to $970,800 for calendar year 2022 (up from $822,375 in 2021). In areas with lower housing costs, the FHA limit can be as low as $420,680.
Obviously, there’s a broad spectrum in between.
These are the “floor” and “ceiling” limits for FHA loans in 2022. In all other areas, loan limits are typically set at 115% of the median home price for the county, as determined by HUD. By design, the maximum FHA lending amounts are intended to be slightly higher than the median home price within a particular area. This makes the program suitable for buyers seeking a modestly priced home.
In most real estate markets, the 2022 limits should give buyers plenty of properties to choose from. But it won’t accommodate those who are shopping on the higher end of the price spectrum — nor is it intended to. The FHA loan program was created to support “low- and moderate-income home buyers,” particularly those with limited cash saved for a down payment.
How FHA Loan Limits Are Determined
Where do these limits come from? How are they determined?
These are two of the most common questions we receive from mortgage shoppers. Here’s a quick overview, starting with the geographical nature of these caps:
FHA loan limits are determined by the county where the home is located, except for properties that are located in metropolitan or “micropolitan” statistical areas. In metro areas, the limits are set using “the county with the highest median home price within the metropolitan statistical area,” according to HUD.
That’s the geographical aspect of it. The maximum lending amounts for this program are based on a percentage of conforming loan limits, which are set by the Federal Housing Finance Agency (FHFA) and are based on home prices. For instance, FHA’s minimum national loan limit “floor” for low-cost areas is typically set at 65% of the national conforming amount for the U.S.
Here’s what home buyers and mortgage shoppers need to know:
The 2022 FHA limits vary from one county to the next. They are based on the Home Price Index (HPI) and get updated — or at least reviewed — every year. They were increased from 2021 to 2022 in most counties, to account for home-price gains that occurred during the previous year. To find the current and complete loan limits for your area, you can conduct a database search on the HUD website via the link below.
Reports for Individual Cities and States
We frequently blog about the FHA loan limits for individual cities, counties and states across the country. Our goal is to give home buyers and mortgage shoppers the information they need to make informed decisions.