Definition
FHA mortgage limits are the maximum loan amounts you can borrow with an FHA loan. These limits are set by the government and vary by location.
Understanding FHA Mortgage Limits
FHA mortgage limits come into play when you're shopping for a home with an FHA loan. They set the cap on how much you can borrow, which varies by county and is based on local home prices. Simple terms: they ensure loans align with area costs. Example: If the limit in your county is $350,000, that's the maximum loan amount you can apply for with an FHA loan in that area. It's not the same everywhere, and it adjusts annually. A common misconception is that these limits are the same as home prices. They're not; they just guide the maximum loan amount FHA will insure.
