Adjustment for rising home prices increases FHA ceiling in high-cost markets like New York, San Francisco and Washington, D.C., and raises the floor in low-cost markets to $524,225.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
Homebuyers putting as little as 3.5 percent down will be able to borrow at least $524,225 in low-cost markets next year and as much as $1.2 million in high-cost markets like New York, San Francisco and Washington, D.C., after a 5.2 percent increase in 2025 FHA loan limits announced Tuesday goes into effect on Jan. 1.
The ceiling for single-family homes in Alaska and Hawaii is being raised to more than $1.8 million in recognition of higher construction costs in those states.
Julia Gordon
“Today’s announcement of loan limit increases, calculated according to statute, enables the FHA program to keep up with nationwide price appreciation,” Federal Housing Commissioner Julia Gordon said, in a statement. “Regular adjustment of loan limits ensures that FHA financing continues to be available in all markets to all those who rely on our programs to access homeownership.”
TAKE THE INMAN INTEL INDEX SURVEY FOR NOVEMBER
The higher loan limits on mortgages backed by the Federal Housing Administration (FHA) track similar increases for conforming loans eligible for purchase by Fannie Mae and Freddie Mac.
Fannie and Freddie’s 2025 conforming loan limit for single-family homes will be $802,650 in most markets, and up to $1,209,750 in high-cost markets, the Federal Housing Finance Agency (FHFA) said in a separate announcement Tuesday.
FHA loan…