What are the FHA Loan Limits?

FHA Loan Limits and 203k Loans

FHA loans are limited to specific maximum dollar amounts set specific to a borrower’s geographic area. For 2018, the technical maximum FHA loan limit is $294,515. However, some geographic areas have higher limits based on the cost of eligible homes in those areas. For example, in 2018, the maximum FHA loan limit for a single-family home in San Francisco, California, was $679,650. An FHA-approved lender can advise borrowers on the FHA loan limits that apply to their specific situation.

203k Loans and FHA Loan Limits

According to HUD, while the cost of a 203(k) funded renovation may vary, “the total value of the property must still fall within the FHA mortgage limit for the area.” This can be determined by:

  1. “The value of the property before rehabilitation plus the cost of rehabilitation, or

  2. “110% of the appraised value of the property after rehabilitation, whichever is less”

If you’d like to learn more about FHA 203k loans, simply fill out the form below and a friendly FHA home loan specialist will get in touch!