The Federal Housing Administration has raised conforming loan limits in 124 high-cost counties effective this quarter, allowing borrowers to finance homes up to $1.15 million with FHA-backed mortgages in the most expensive markets.
The adjustment is designed to keep FHA loans relevant in metropolitan areas where median home prices have outpaced previous limits. VA loan limits, which were uncapped for eligible borrowers, remain unchanged.
Housing counselors note that higher loan limits must be paired with responsible underwriting to prevent borrowers from overextending. Debt-to-income ratios remain a critical guardrail in the approval process.
