The Federal Housing Administration (“FHA”) has announced 2025 loan limits applicable to FHA-insured Single Family Forward Mortgages in Mortgagee Letter 2024-21. FHA loan limits have increased across the country, reflecting the continued appreciation of home prices in 2024.
Under the National Housing Act, FHA is required to calculate floor and ceiling limits based on the national conforming loan limits set by the Federal Housing Finance Agency, for conventional loans sold to Fannie Mae and Freddie Mac. FHA will increase the low-cost area “floor” from $498,257 to $524,225 for one-unit properties in most parts of the county. This figure is equal to 65% of the national conforming loan limit of $806,500 recently announced by the Federal Housing Finance Agency. The loan limit “ceiling” for one-unit properties will also increase in high-cost areas from $1,149,825 to $1,209,750, matching conventional conforming loan limits in high-cost areas. This “ceiling” amount is equal to 150% of the national conforming limit for one-unit properties.
Alaska, Hawaii, Guam, and the Virgin Islands are special exception areas, with mortgage limits adjusted by FHA to cover higher costs of construction. For these four areas, the “ceiling” limit for a one-unit property increased from $1,724,725 for 2024 to $1,814,625 for 2025.
FHA will provide the updated loan limits in a future Single Family Housing Policy Handbook 4000.1 update, including section II.A.2.a.ii(B) – Low-cost Area; section II.A.2.a.ii(C) – High-cost Area; and section II.A.2.a.II(D) – Special Exceptions for Alaska, Hawaii, Guam and the Virgin Islands. The updates for nationwide mortgage limits are as follows:
| Property Size | Low-cost Area “Floor” | High-cost Area “Ceiling” | Alaska, Hawaii, Guam, and U.S. Virgin Islands “Ceiling” |
| One-Unit | $ 524,225 | $ 1,209,750 | $ 1,814,625 |
| Two-Units | $ 671,200 | $ 1,548,975 | $ 2,323,450 |
| Three-Units | $ 811,275 | $ 1,872,225 | $ 2,808,325 |
| Four-Units | $ 1,008,300 | $ 2,326,875 | $ 3,490,300 |
The new loan limits are effective for FHA case numbers assigned on or after January 1, 2025. For a complete list of FHA loan limits, please visit FHA’s Maximum Mortgage Limits web page.
Mortgagee Letter 2024-21 also provides new requirements to request a local increase in the Mortgage Loan Limits determined by the Department of Housing and Urban Development (“HUD”). Requests must be submitted no later than 30 days after the November 26, 2024, publication date of the new limits.
