HUD Announces 2025 Loan Limits

(Table courtesy of HUD)

The Federal Housing Administration announced new loan limits for calendar year 2025 for its Single-Family Title II forward and Home Equity Conversion Mortgage insurance programs.

“Loan limits for most of the country will increase in the coming year due to the continued appreciation of home prices over the past year,” FHA said in a statement.

According to the National Housing Act, FHA must update its annual loan limits each year. The formula uses county or metropolitan statistical area home sale data to derive new loan limits for the three cost categories established by the law.

“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. “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.”

Forward Mortgage Loan Limits

The new forward mortgage loan limits in the table below are effective for FHA case numbers assigned on or after January 1, 2025. Notably, the maximum loan limits for FHA forward mortgages will rise in 3,151 U.S. counties.

Mortgage limits for the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands are adjusted by FHA to account for higher costs of construction. 

HECM Loan Limits

The HECM maximum claim amount will increase from $1,149,825 in calendar year 2024 to $1,209,750 for FHA case numbers assigned on or after January 1, 2025, FHA said. This maximum claim amount applies to all areas, including the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

Visit FHA’s Loan Limits Page for more information on FHA loan limits, areas at the FHA ceiling and areas between the floor and the ceiling.