How Much FHA Loan Can I Get?

FHA loans are a great option for first-time homebuyers and people with low credit scores. So how much FHA loan can you get?

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How Much Can I Borrow?

FHA loans are a popular choice for first-time home buyers and those with less-than-perfect credit. They offer low down payments and relaxed credit requirements, making them an accessible and affordable option. But just because you can get an FHA loan doesn’t mean you should. Here’s what you need to know about FHA loans before you apply.

The Maximum Loan Amount Formula

The maximum loan amount for FHA loans varies by county, but is generally about $275,000. To find out the maximum loan amount in your county, consult your local FHA lender or visit the HUD website.

The HUD website provides a list of FHA-approved lenders in every state. Once you find a lender near you, consult with them about getting pre-approved for an FHA loan.

FHA loans are available for both purchase and refinance transactions. If you’re looking to buy a home, you can use an FHA loan to purchase a single-family home, a duplex, a triplex, or a fourplex. You can also use an FHA loan to buy a manufactured home or modular home.

If you’re looking to refinance your existing home loan, you can also use an FHA loan to do so. You can use an FHA cash-out refinance loan to tap into your home equity and repay your existing mortgage balance at the same time. You can also use an FHA streamline refinance loan to lower your monthly payment if you’ve been consistently making on-time payments on your existing mortgage.

How the Loan Limit is Determined

The FHA loan limit is determined by the value of the home and is divided into three tiers:
-Standard Loan Limit: The majority of U.S. counties have a standard loan limit of $314,827 for a one-unit dwelling. That’s for a single-family home in 2021.
-High Cost Loan Limit: There are 118 counties with a high cost loan limit of $358,800 for a one-unit dwelling in 2021. That includes areas where housing costs are especially high, such as Hawaii, Alaska, Guam and the U.S. Virgin Islands.
-Special Exception Loan Limit: There are nine counties with a special exception loan limit of $615,250 for a one-unit dwelling in 2021. That includes New York City, which is made up of five boroughs: Brooklyn, Queens, Staten Island and The Bronx; as well as Middlesex County, Essex County and Union County in New Jersey; Fairfield County in Connecticut; and San Francisco, San Mateo and Santa Clara counties in California.

How Much House Can I Afford?

Many people ask themselves this question when they are looking to buy a home. The answer is not always simple, as there are many factors that go into calculating how much house you can afford. However, there are some general guidelines that can give you a good starting point.

Front-End Ratio

The front-end ratio is a good way to compare different loan options. This number represents the percentage of your monthly income that would go towards your monthly mortgage payment, including insurance and taxes. This means that if your front-end ratio is 28%, that means you would have $280 in monthly mortgage payments for every $1,000 in monthly income. The ideal front-end ratio is below 28%.

Back-End Ratio

Your back-end DTI ratio, also known as your debt-to-income ratio, compares your monthly debt obligations to your monthly income. Lenders use this number to decide how much house you can afford.

They calculate it by adding up all your monthly debts — things like credit card bills and car loans — then dividing that number by your gross monthly income. (Gross means before taxes.) For example, if you earn $4,000 a month and spend $1,000 on debts, your back-end ratio is 25 percent ($1,000 divided by $4,000). That’s pretty low — most lenders prefer to see a DTI under 36 percent.

How Much Should I Put Down?

One question homebuyers often ask is “How much FHA loan can I get approved for?” FHA Mortgage Loans are perfect for first-time homebuyers because they only require a minimum down payment of 3.5%. But how much can you really afford to put down on your home loan?

Minimum Down Payment

The minimum down payment for an FHA loan is 3.5%. This is for borrowers with credit scores of 580 or higher. Borrowers with credit scores between 500 and 579 must put down 10%. FHA loans are not available to home buyers with credit scores below 500.

These are the maximums that can be borrowed, but you will need to qualify for the loan amount based on other factors such as your income, employment history, and debts. Lenders typically approve FHA loans for borrowers with credit scores of 640 or higher. If you have a lower credit score and can put down at least 10%, you may be able to get an FHA loan.

Mortgage Insurance

In order to get approval for an FHA loan, you must have at least a 3.5% down payment. For a $200,000 home, this would mean saving $7,000. While this is the minimum required down payment, it is important to know that your ability to make a higher down payment can affect both approval for your loan and the interest rate you receive. If you are able to put down more than the minimum required 3.5%, your interest rate may be lower and your monthly payments could be lower as well.

However, one thing to keep in mind is that if you do put down less than 20%, you will be required to pay mortgage insurance each month as part of your payment. Mortgage insurance is there to protect the lender in case you default on your loan, and it can add several hundred dollars to your monthly payment if you are putting less than 20% down on your home.

If you are approved for an FHA loan with a down payment of less than 10%, you will also be required to pay what’s called an upfront mortgage insurance premium (UFMIP). This is a one-time fee that’s equal to 1.75% of the loan amount, and it can be rolled into the total loan amount so that you don’t have to come up with the cash when you close on your home.

How Much Will My Mortgage Payment Be?

Principal and Interest

The principal and interest payment on a mortgage is the amount you pay to your lender every month that goes toward both the principal, or loan balance, and the interest, or cost of borrowing the money. The principal portion of your payment landlords your equity in the home; as you pay down your loan balance, you own more of your home outright. The interest portion of your payment goes toward the cost of borrowing money from a lender. In order to make sure that lenders are compensated for the risk they take when loaning money, mortgage interest rates are usually higher than rates on other types of loans.

Taxes and Insurance

Your monthly mortgage payment will include taxes and insurance, in addition to your principal and interest. The amount of taxes and insurance will vary depending on the type of property you are buying, your location, and the type of loan you have.

For example, if you are buying a single family home in Texas with an FHA loan, you will have to pay 1/12 of your annual property taxes as part of your monthly mortgage payment. If your annual property taxes are $2,000, then your monthly mortgage payment will include $167 for taxes ($2,000/12).

You will also have to pay for homeowner’s insurance as part of your monthly mortgage payment. The amount of insurance will depend on the type of home you are buying and the lender you are using. For example, if you are buying a single family home with an FHA loan, you will have to pay for Private Mortgage Insurance (PMI). The amount of PMI will vary depending on the size of your down payment and the lender you are using.

How Much Can I Get Pre-Approved For?

If you’re thinking of buying a home, it’s important to know how much you can get pre-approved for. This will give you an idea of how much house you can afford, and help you narrow down your house search to houses within your budget. Getting pre-approved for an FHA loan is not as hard as you might think.


Pre-qualification is an estimate of what you can afford. It tells you how much lender is willing to give you based on the information you provided about your income, employment, credit and debts. Pre-qualification isn’t binding, but it’s a good way to get an idea of how much house you can afford.

The pre-qualification process is quick and easy, and it’s usually done over the phone or online. You’ll answer some questions about your finances and the type of loan you’re looking for, and the lender will give you an estimate of how much money you can borrow.

Pre-approval is more intense. To get pre-approved, you’ll supply documentation about your income, assets, debts and employment. You might even have to go through a credit check. Once you’re pre-approved, you’ll get a letter that tells sellers how much money they can expect from you — which could put YOU in a better position when negotiating the purchase of a home!


Getting pre-approved for a loan gives you an advantage in competitive markets because it shows sellers that you’re serious and have been qualified by a lender. When you get pre-approved, you’ll receive a letter from the lender stating the amount of money you can borrow, the type of loan they recommend and the interest rate you can expect to pay.

With a pre-approval in hand, you’ll know exactly how much home you can afford and can shop confidently, knowing that you have loan approval. This will also give you an estimate of what your monthly mortgage payments would be. Pre-approvals are normally good for 60-90 days, but some lenders may offer longer terms.

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