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January 6, 2022

FHA Loan Limits for 2022 

FHA Loan Limits for 2022 

In 2022, the federal housing association will increase the FHA loan limit for a single-family home from $356,362 to $420,680 in most areas and from $822,375 to $970,800 in high cost areas such as California and Hawaii. The goal of the FHA is to help borrowers with moderate income and credit scores get mortgage loans. To begin applying for an FHA loan with Neat, check out our online application.

What is an FHA loan?

A Federal Housing Administration loan, commonly called an FHA loan, is one of several options homebuyers have for financing the purchase of a home. The Federal Housing Administration was established by Congress in 1934, just after the Great Depression, to help low income individuals qualify for home loans.

FHA loans are called government-backed or federally-insured loans. This means the FHA insures the mortgages to protect lenders from losses. If a borrower defaults on an FHA loan, the FHA will pay the lender for the unpaid balance of the principal owed. Because this insurance protection reduces a lender’s risk, it allows the lender to grant mortgages to these homebuyers. It also helps make homeownership more accessible since FHA loans have lower rates, minimal down payments, and reduced credit score requirements.

What are the FHA loan limits for 2022?

While the general boundaries of FHA loans for 2022 are $420,680 and $970,800, the specific limits vary by location and number of available housing units. Here are answers to common questions about FHA loans and the 2022 FHA limits to help you determine whether an FHA mortgage is the right type of home loan for you.

What are FHA loan requirements?

FHA loans are a great option for many homebuyers, but these loans do have some specific requirements:

  • They must be issued by an FHA-approved lender.
  • They can be used on single-family homes as well as two-, three-, or four-unit homes as long as you reside in one of the units.
  • You must meet the FHA’s and lender’s requirements regarding down payment, credit score, debt-to-income ratio, mortgage insurance, home appraisal, etc.
  • The mortgage amount must fall within the floor and ceiling of the FHA loan limits in your area.

What are the 2022 FHA loan limits?

The FHA loan limits are adjusted each year according to the housing market. This chart offers an overview of the limits. Again, it’s essential to confirm the limits in your area for the type of dwelling you want to finance. 

Based on data from U.S. Department of Housing and Urban Development.

To learn the loan limits for your area, visit the U.S. Department of Housing and Urban Development FHA Mortgage Limits or speak with a trusted mortgage lender today.
Log in to Neat Loans to find out if an FHA loan is right for you.
Thanks for reading! Please note that this content is intended for educational purposes only. As laws and lender requirements change regularly, you should speak to a home loan advisor about your particular situation. If you’re interested in purchasing or refinancing a home,  check out today's mortgage rates or get pre-approved in three minutes.

Jen Farmer

Chief Marketing Officer
Top-performing marketing leader with consistent appointments to higher levels of seniority at a $15B S&P 500 healthcare corporation. Broad B2B and consumer marketing experience in both strategy and execution, leveraging an analytical mindset with a Master’s level foundation in writing and communi...