source:
  type: guide
  id: hud-4000-1-ii-a-maximum-mortgage-amounts
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Maximum
    Mortgage Amounts (01/01/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Maximum
    Mortgage Amounts (01/01/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-a-maximum-mortgage-amounts-full
  canonical_id: hud-4000-1-ii-a-maximum-mortgage-amounts-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Maximum
    Mortgage Amounts (01/01/2025)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Maximum
      Mortgage Amounts (01/01/2025)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'a. Maximum Mortgage Amounts (01/01/2025) A Mortgage that is
      to be insured by FHA cannot exceed the Nationwide Mortgage Limits. Under most
      programs, the maximum Mortgage is the lesser of the Nationwide Mortgage Limit
      for the area, or a percentage of the Adjusted Value. For purchase transactions,
      the Adjusted Value is the lesser of: • purchase price less any inducements to
      purchase; or • the Property Value. For refinance transactions: • For Properties
      acquired by the Borrower within 12 months of the case number assignment date,
      the Adjusted Value is the lesser of: o the Borrower’s purchase price, plus any
      documented improvements made subsequent to the purchase; or o the Property Value.
      • Properties acquired by the Borrower within 12 months of case number assignment
      by inheritance, through a Gift from a Family Member, or through a non-monetary
      transaction may utilize the calculation of Adjusted Value for Properties purchased
      12 months or greater. • For Properties acquired by the Borrower greater than
      or equal to 12 months prior to the case number assignment date, the Adjusted
      Value is the Property Value. i. National Housing Act’s Statutory Limits The
      National Housing Act establishes the maximum Mortgage limits and the mortgage
      amounts for all FHA mortgage insurance programs. ii. Nationwide Mortgage Limits
      [Effective for case numbers assigned on or after January 1, 2025] Mortgage limits
      are calculated based on the median house prices in accordance with the statute.
      FHA’s Single Family mortgage limits are set by Metropolitan Statistical Area
      (MSA) and county and will be published periodically. FHA’s Single Family mortgage
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing
      Programs Forward Mortgages 2. Allowable Mortgage Parameters Handbook 4000.1
      175 Last Revised: 11/26/2025 limits are available by MSA and county, or by downloading
      a complete listing. FHA publishes updated limits effective for each calendar
      year. These limits will be set at or between the low-cost area and high-cost
      area limits based on the median house prices for the area. (A) Requests for
      Local Increases Any requests to change Mortgage Loan limits determined by HUD
      must be received by FHA at the email address no later than 30 Days from the
      publication of the limits each year. Any changes in area Mortgage Loan limits
      as a result of valid appeals will be retroactively in effect for case numbers
      assigned on or after January 1 of each year. Each request to change Mortgage
      Loan limits must contain sufficient housing sales price data, listing one-family
      Properties sold in an area within the 12-month look- back period, November through
      October of the previous year. Requests should differentiate between Single Family
      residential Properties, and condominiums or cooperative housing units. Ideally,
      the data provided should also distinguish between distressed and non-distressed
      sales. Requests for a change will only be considered for counties for which
      HUD does not already have home sales transaction data for the calculation of
      Mortgage limits. All requests to change Mortgage Loan Limits must be submitted
      to FHA’s Resource Center via email at answers@hud.gov. All requests must include
      in the subject line: Mortgage Loan Limit Requests. (B) Low-Cost Area The FHA
      national low-cost area mortgage limits, which are set at 65 percent of the national
      conforming limit of $806,500 for a one-unit Property, are, by property unit
      number, as follows: • One-unit: $524,225 • Two-unit: $671,200 • Three-unit:
      $811,275 • Four-unit: $1,008,300 (C) High-Cost Area The FHA national high-cost
      area mortgage limits, which are set at 150 percent of the national conforming
      limit of $806,500 for a one-unit Property, are, by property unit number, as
      follows: • One-unit: $1,209,750 • Two-unit: $1,548,975 • Three-unit: $1,872,225
      • Four-unit: $2,326,875 II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A.
      Title II Insured Housing Programs Forward Mortgages 2. Allowable Mortgage Parameters
      Handbook 4000.1 176 Last Revised: 11/26/2025 (D) Special Exceptions for Alaska,
      Hawaii, Guam, and the Virgin Islands Mortgage limits for the special exception
      areas of Alaska (AK), Hawaii (HI), Guam (GU), and the Virgin Islands (VI) are
      adjusted by FHA to account for higher costs of construction. These four special
      exception areas have a higher ceiling as follows: • One-unit: $1,814,625 • Two-unit:
      $2,323,450 • Three-unit: $2,808,325 • Four-unit: $3,490,300 iii. Financing of
      Upfront Mortgage Insurance Premium Unless otherwise stated in this section (Origination
      through Post-closing/Endorsement), restrictions to mortgage amounts and LTVs
      are based upon the amount prior to the financing of the Upfront Mortgage Insurance
      Premium (UFMIP) (Base Loan Amount). The total mortgage amount may be increased
      by the financed UFMIP amount. iv. Calculating Maximum Mortgage Amounts on Purchases
      The maximum mortgage amount that FHA will insure on a specific purchase is calculated
      by multiplying the appropriate LTV percentage by the Adjusted Value. In order
      for FHA to insure this maximum mortgage amount, the Borrower must make a Minimum
      Required Investment (MRI) of at least 3.5 percent of the Adjusted Value. v.
      Additions to the Mortgage Amount for Repair and Improvement (A) Appraiser Required
      Repairs A Mortgagee may add repair costs to the sales price before calculating
      the mortgage amount if: • the repairs are required by the Appraiser to meet
      HUD’s MPR; • the repairs are paid for by the Borrower; and • the sales contract
      or addendum identifies the Borrower as the party responsible for payment and
      completion of the repairs. The maximum amount of repair costs that may be added
      to the sales price is the lesser of: • the amount by which the value of the
      Property exceeds the sales price; • the Appraiser’s estimate of repairs; or
      • the amount of the contractor’s bid. (B) Energy-Related Weatherization Repairs
      and Improvements A Mortgagee may add energy-related weatherization costs, to
      be paid for by the Borrower, in accordance with Weatherization policies. II.
      ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs
      Forward Mortgages 2. Allowable Mortgage Parameters Handbook 4000.1 177 Last
      Revised: 11/26/2025 (C) Solar Energy Systems A Mortgagee may add the cost of
      a solar energy system (including active and passive solar- and wind-driven systems)
      to the Mortgage in accordance with Solar and Wind Technologies policies. When
      adding the cost of a solar energy system to the mortgage amount, the maximum
      insurable mortgage limit may be exceeded by up to 20 percent.'
  judgment: false
