There is good news for mortgage shoppers. The new FHA loan limits were released in December 2017 by The Department Housing and Urban Development (HUD) showing that in 2018 they have raised limits in many metro areas across the nation.

FHA mortgages are very popular with first time home buyers and people who do not have a lot of cash. Borrowers can see benefits with these types of loans like very low downpayment options – 3.5% down, very low mortgage rates and higher debt-to-income ratio are accepted.

Many areas can expect to see the limits rise by 6.4 percent, starting on January 1, 2018. A total of 3,011 out of 3,234 counties will see limits rise and 223 won’t see any changes in 2018.

Limits have increased by an additional $43,500 which raised the limits from $636,150 to $679,650. FHA loan limit minimums went up as well from $275,665 to $294,515 for low-cost areas.

The high-cost areas are referred to as the “ceiling limit” and low-cost areas as the “floor limit.”

For example, here in California, 11 high-cost metropolitan areas saw increases to their “ceiling limits” such as Los Angeles – Long Beach – Anaheim in both Orange and Los Angeles Counties. The following table shows the current limits for these high-cost areas

Loan Type One Unit Two Units Three Units Four Units
FHA Forward $679,650 $870,225 $1,051,875 $1,307,175

The following table shows the low cost (floor) in areas that are not considered high cost.

Loan Type One Unit Two Units Three Units Four Units
FHA Forward $294,515 $377,075 $455,800 $566,425

Also, the maximum claim amount for FHA-insured Home Equity Conversion Mortgages (HECMs) will increase to $679,650 from $636,150.

If you have any question about FHA loan limits in your area or you would like to prequalify for a mortgage, please contact me, Erik Sandstrom, at 1-800-779-4547; or email me at

By the way, here is the full PDF version of the new limits and some links below.

2018 FHA Loan Limits

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Erik Sandstrom
LoanSafe's Mortgage Expert
I'm a Senior Loan Officer and LoanSafe mortgage expert. If you need a live rate quote, or need help getting a new mortgage, please call me direct anytime at 619-379-8999.