Our estimates show that 2027 FHA loan limits may rise from $541,287 in 2026 to $554,700 in 2027 for a 1-unit home.
FHA loan limits might rise in 2027, and it could help you buy more home.
Each year, the Department of Housing and Urban Development (HUD) updates FHA loan limits based on changes to conventional loan limits.
Based on most recent available data, FHA loan limits might increase by 2.48% from $541,287 in 2026 to $554,700 in 2027 for a 1-unit home.
2027 FHA Loan Limit Forecast
| Units | 2027 FHA Loan Limits (Est.) | 2027 High-Cost FHA Limits (Est.) | 2027 Alaska, Hawaii, Guam, USVI (Est.) |
|---|---|---|---|
| 1 | $554,700 | $1,280,080 | $1,920,125 |
| 2 | $710,250 | $1,638,779 | $2,458,175 |
| 3 | $858,475 | $1,980,901 | $2,971,350 |
| 4 | $1,066,950 | $2,461,775 | $3,692,675 |
2026 FHA Loan Limits
| Units | 2026 Standard FHA Limits | 2026 FHA High-Cost Limits | FHA Limits Alaska, Hawaii, Guam, USVI 2026 |
|---|---|---|---|
| 1 | $541,287 | $1,249,125 | $1,895,525 |
| 2 | $693,050 | $1,599,375 | $2,426,675 |
| 3 | $837,700 | $1,933,200 | $2,933,300 |
| 4 | $1,041,125 | $2,402,625 | $3,645,350 |
Looking at loan limit calculations for conventional loans, we can get a preliminary idea about FHA loan limit changes in 2027.
Will 2027 FHA Loan Limits Increase?
HUD sets FHA limits at 65% of national conventional loan limits set by the Federal Housing Finance Agency, or FHFA, the overseer of Fannie Mae and Freddie Mac.
FHFA determines its loan limits by comparing year-over-year home price changes in the third quarter as measured by its Home Price Index.
As of this writing, only second-quarter data is available. This data sheds light on potential loan limit increases for both conventional and FHA loans.
Using FHFA’s methodology, we find that conventional loan limits might increase by 2.48% assuming Q3 home price increases are similar to those in Q2.
= (2026 Q2 HPI – 2025 Q2 HPI) / 2025 Q2 HPI
= (424.28 – 414.02) / 414.02*
= 0.0248 (2.48%)
If year-over-year home price changes are similar to those in Q2, the conventional loan limit might increase 2.48% from $832,750 in 2026 to $853,375 in 2027.
Because FHA sets limits at 65% of conventional limits, FHA loan limits might increase from $541,287 in 2026 to $554,700 in 2027, a 2.48% increase.
Keep in mind, however, that home price increases can change dramatically from quarter to quarter. We won’t know the official 2027 loan limits until FHFA and HUD release final numbers toward the end of November 2026.
About FHA Standard and High-Cost Loan Limits
Like conventional loans, FHA loans allow higher loan limits for properties in high-cost areas.
Interestingly, it matches conventional loan limits in the most expensive areas of the U.S., allowing maximum loans up to 150% of the conventional limit.
Standard areas: 65% of the conventional limit
High-cost areas: 150% of the conventional limit
HUD also maintains a list of about 350 areas in which loan limits are somewhere between standard and high-cost levels. The 2027 limits for these areas will be determined on a case-by-case basis depending on home price changes within the area.
Can 2027 FHA Loan Limits Decrease?
FHA loan limits cannot decrease even if Q3 2026 home prices decline from the previous year. In this case, FHA loan limits would remain the same.
Likewise, if a particular county’s home prices drop, FHA loan limits will stay the same, following the same guidelines FHFA sets for conventional loans.
Should FHA Buyers Wait Until 2027?
Homebuyers might be tempted to wait for potentially higher loan limits in 2027, especially if they need an FHA loan.
However, there’s no guarantee that limits will increase, and home prices are on an upward trajectory.
Buyers who can afford a home using today’s FHA loan limits should consider buying before prices have a chance to climb further in 2027.
Methodology and notes:
*Loan limits are based on FHFA’s expanded-data indexes, which is why the above figures differ from commonly cited HPI numbers. Additionally, FHFA uses a multiplier above the 1-unit high-cost limit to determine 2-, 3-, and 4-unit high-cost maximums:
2-unit: 1.28021583 X 1-Unit High-Cost Max
3-unit: 1.54748201 X 1-Unit High-Cost Max
4-unit: 1.92314149 X 1-Unit High-Cost Max
Sources:
FHFA Loan Limits Addendum
Fannie Mae
