The U.S. Department of Housing & Urban Development (HUD) has announced updated loan limits for calendar year 2026 under the Federal Housing Administration’s (FHA) Single Family Title II forward and Home Equity Conversion Mortgage (HECM) programs, reflecting ongoing increases in home prices nationally. These new thresholds, effective for FHA case numbers assigned on or after January 1, 2026, are designed to support continued access to mortgage credit for homebuyers and homeowners across diverse housing markets.
Under the statutory framework of the National Housing Act, FHA recalibrates its annual loan limits based on county and Metropolitan Statistical Area (MSA) home sales data. The formula aligns FHA’s floor and ceiling limits with the national conforming loan limits established by the Federal Housing Finance Agency (FHFA) for loans backed by Fannie Mae and Freddie Mac. Areas where 115% of median home prices fall below the statutory floor are subject to the baseline floor limit, while areas with higher home prices are designated as high-cost and eligible for elevated limits up to 150% of the FHFA conforming limit.
The FHA’s annual adjustment of loan limits plays a crucial role in sustaining access to affordable credit for first-time and moderate-income borrowers, especially in markets with elevated price levels. By updating these limits, HUD aims to preserve affordability while aligning its insurance programs with prevailing market conditions. Borrowers and lenders can consult FHA’s detailed loan limit tables online to determine specific limits for individual counties and MSAs.
For 2026, the new forward mortgage loan limits are as follows:
- A $541,287 floor and a $1,249,125 ceiling for one-unit properties
- A $693,050 floor and $1,599,375 ceiling for two-unit properties
- A $837,700 floor and $1,933,200 ceiling for three-unit properties
- A $1,041,125 floor and $2,402,625 ceiling for four-unit properties
These adjustments reflect continued housing market appreciation and are intended to ensure that FHA-insured financing remains viable in both lower-cost and higher-cost localities nationwide.
In addition to forward mortgage increases, the HECM maximum claim amount — which determines the aggregate mortgage insurance limit for reverse mortgages — will rise from $1,209,750 in 2025 to $1,249,125 for 2026. This uniform increase applies across all areas, including special exception jurisdictions such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where construction costs tend to be higher.
