FHA Loans
FHA loans are made by approved lenders and insured by the Federal Housing Administration. They can finance eligible owner-occupied one- to four-unit homes. FHA does not make these loans or set your interest rate; the lender reviews your credit, income, assets and property.
For 2026, the FHA one-unit loan-limit floor is $541,287 and the high-cost ceiling is $1,249,125. Special exception areas have higher ceilings, and two- to four-unit properties have different limits. A county limit may fall between the floor and ceiling: use the HUD FHA Mortgage Limits lookup for your property and year. These limits generally apply to the base loan amount before financed upfront mortgage insurance; the total mortgage may exceed the limit by the financed premium. Forward-mortgage limits are separate from reverse-mortgage HECM limits.
Planning for 2027? As of November 10, 2026, FHFA and HUD have not announced their 2027 loan limits. These are published 2026 figures, not 2027 limits. Confirm the applicable year, county and number of units before choosing a loan. Some lenders already accept higher conventional amounts before FHFA announces the 2027 limits, but those individual lender programs are not the official 2027 conforming loan limit and do not change FHA limits, which follow a separate HUD schedule. HUD had not published 2027 FHA limits as of November 11, 2026.
What is an FHA Loan?
FHA insures eligible mortgages made by approved lenders. Qualified buyers may purchase an owner-occupied one- to four-unit home with as little as 3.5% down. The minimum down payment depends on credit eligibility, and lenders may have additional requirements. FHA loans generally include upfront and annual mortgage insurance. Down-payment assistance may be available subject to program eligibility and funding.
Documents Needed for FHA Loans
Required documents depend on your income, assets, credit and transaction. Common examples include recent pay statements, W-2s or other income records, bank statements, identification and information about debts. Tax returns and business records may be required for self-employed borrowers. Your loan officer will provide a tailored list; documentation alone does not guarantee approval.
FHA Versus Conventional Loans
Both programs review credit, income, assets, debts and the property. FHA offers a 3.5% down-payment option for eligible borrowers; some conventional programs permit 3% down. Compare mortgage insurance, county limits, closing costs and the actual rate offered rather than assuming FHA always requires less down or conventional always costs more.
What Can I Afford?
Affordability depends on your full monthly housing payment, other debts, income, savings and underwriting result. Include principal, interest, property taxes, homeowners insurance, FHA mortgage insurance and any HOA dues. FHA does not impose the same 29% housing and 41% total-debt caps on every borrower. Automated and manual underwriting have different requirements; your lender must evaluate the applicable guidelines and any compensating factors.
Bankruptcy and FHA Loans
A previous bankruptcy does not automatically prevent FHA eligibility. Waiting periods and documentation depend on the chapter, discharge or repayment status, credit re-establishment and underwriting method. Court approval may be required during Chapter 13 repayment. Ask your loan officer to review the current FHA requirements; exceptions are not automatic.