The Federal Housing Administration has raised its loan limits for 2026, with the ceiling in high-cost areas now set at $1,209,750 for single-family properties. The increase reflects continued home price appreciation and aims to keep FHA financing viable in expensive markets.
FHA loans remain popular among borrowers with lower credit scores and smaller down payments, requiring as little as 3.5 percent down with a credit score of 580 or higher. The trade-off is mandatory mortgage insurance premiums that add to monthly costs.
Mortgage brokers report that FHA products are seeing renewed interest from move-up buyers in coastal markets where conventional conforming limits still fall short of median home prices.
