In 2019, the maximum mortgage amount offered through the Federal Housing Administration, ranges from $314,827 to $726,525 for a single family home, depending on the borrower’s location.
This maximum amount that may be insured, known as the lending limit, increased in 2019 due to spikes in home pricing across the United States. Because home prices plays a big role in how FHA limits fluctuate each year, real estate markets where median home prices are exceptionally high, such as New York City or San Francisco, will see the highest limits by comparison. Specific to these markets, known as “high-cost” markets, the national loan limit trended upwards over the last couple of years, increasing from $625,000 in 2016 to a maximum of $726,525 in 2019.
Changes in what you may borrow through the FHA program will differentiate by county as determined by the Housing and Urban Development (HUD) agency. To see how your county was affected, view your loan limits by county here.
Noting that loan limits update each year, there are several variables that may dictate whether limits rise or fall. In addition to fluctuations in home prices, loan amounts may be influenced by Fannie Mae and Freddie Mac depending on what is set among conventional loans. In addition to fluctuations in conventional loan limits, the borrower’s chosen property type, whether single-family or a duplex, may also affect what one is able to borrow. Lastly, and not unique to FHA loans, a borrower’s debt-to-income (DTI) ratio will play a factor in determining the maximum loan amount that may be granted. Specific to FHA loans, however, the current DTI maximum is 43%. This means that your combined monthly recurring debts should, including the mortgage, should not account for more than 43% of monthly earnings.