2019 FHA Loan Limits
Each year HUD and FHA determine the maximum amount FHA homebuyers can borrow with an FHA loan. 2019 conforming
loan limits have increased substantially, which indicates FHA loan limits will be higher in 2019. To view both
2018 and 2019 conforming and FHA loan limits, use our lookup tool.
FHA Loan Estimate
FHA Loan Calculator
FHA loans are used by millions of families, including both first-time & experienced homebuyers,
in all 50 states. They carry competitive interest rates, low down payments
(only 3.5%), and more flexible credit standards than traditional mortgage loans.
NOTE: If you meet certain income restrictions and are
buying in a rural area, it's worth looking into USDA loans. They require
no down payment and may result in a lower payment.
You can use our USDA loan calculator to learn more.
Also, if you are a veteran, active duty, reservist, military spouse, or otherwise eligible,
VA loans offer no down payment and no monthly mortgage insurance.
The payment benefits of using a VA loan are significant.
FHA loan payments are complicated.
We've made it easier to budget for the purchase of your new home by accounting
for all of FHA's payment quirks; including taxes,
MIPMortgage Insurance Premium, and upfront mortgage insurance. Additionally,
because you don't visit open houses bearing a desktop computer,
we've optimized our calculators for phones and tablets.
Loan limits & their impact on your purchase price.
There are maximum loan amounts that apply to FHA loans depending on the state and county in which you are buying.
Your purchase price can be above the county
loan limit, but you'll need to make up the difference with a larger down payment.
In most counties the 2018 limit is $294,515. In areas with
higher average home values,
the loan limit is adjusted to allow for utilization of an
FHA loan for higher purchase prices.
You can peruse FHA loan limits, as well as conforming and VA, using our
Your down payment must be at least 3.5%.
Minimizing the amount of money needed to close on your new home is one of the top reasons FHA loans are so
popular. While conventional loans typically require stronger credit scores and at least 5% down payments, FHA
requires only 3.5%. Additionally, family members are permitted to gift the down payment to the homebuyer.
While most FHA buyers take advantage of the 3.5% minimum down payment, putting 5% down or more reduces the amount
of PMI added to your monthly payment. The reduction is minimal (0.85% to 0.80% on a 30 year FHA loan),
but it is worth considering if you're thinking about making a larger down payment.
FHA interest rates are very competitive.
Mortgage rates are determined by
the amount of risk the lender is taking when issuing a new loan. The government backing of FHA loans means
the lender's risk is reduced. The insurance pays the lender back should the homebuyer default.
The result is very competitive interest rates on new FHA loans that are typically
lower than comparable conventional or non-government backed loans.
FHA loan terms are typically 15 or 30 years.
Your new FHA loan term will be either 15 or 30 years. While most homebuyers will choose a 30 year term,
a 15 year term will result in a higher monthly payment, but the savings are substantial.
If you can afford the higher payment, considering a 15 year term will save you thousands of dollars.
Our FHA calculator permits you to use virtually any term up to 30 years to help you plan ahead.
For example, if you want your home paid off by the time your kids leave for college, choose the appropriate
loan term to determine how much you would have to pay each month to meet your goal.
FHA mortgage insurance will always be part of your payment.
An FHA loan consists of two mortgage insurance premiums.
The first is a flat rate called UFMIP (Upfront Mortgage Insurance Premium). UFMIP
is included in your final loan amount (Purchase Price - Down Payment + UFMIP = FHA Loan Amount),
so you essentially pay this premium
over time as part of your principal and interest payment.
The second is an annual premium that is paid monthly as part of your house payment. Our calculator
does the math for you, but if you're curious,
FHA mortgage insurance rates are explained here.
The annual premium is added to your regular principal and interest payment and will remain there
for the life of your FHA loan*, so accounting for it is critical
when budgeting for your new house payment.
*If you opt for the 30 year term, FHA PMI will remain part of your payment for the life of the loan.
Tips for using our FHA Loan Calculator
FHA Loan Features
- Minimim 3.5% Down Payment
- Competitive Interest Rates
- Flexible Credit Standards
- Manufactured Homes
- 203k Renovation Loans
The Federal Housing Administration is part of the Department of Housing and Urban Development (HUD).
In addition to traditional purchase and refinance loans, there are multiple niche options available.
information on the various FHA loans.
What's My Payment?'s best-in-class mortgage calculators, including FHA, VA, USDA, refinance, and conventional
loans, are optimized for phones, tablets, and desktop.
It's easier than ever to budget for your new home purchase.
Click here to view all calculators.
FHA Loan Limits for 2019 Coming Soon
When FHA announces their loan limits for 2019, we'll post them here. Last update: Dec 6, 2018..
How Much is FHA Mortgage Insurance?
FHA mortgage insurance consists of a financed upfront fee of 1.75% of your loan amount. A monthly premium is calculated based on loan term and down payment...
Ask the Seller to Pay Your Closing Costs
Seller paid closing costs are a great way to minimize your out of pocket cash to close. 3% (the conventional max) to 6% (the FHA max) is common...
FHA vs Conventional Loan
FHA is often best when looking to minimize out of pocket cash & down payment. Conventional loans are for borrowers with strong credit & more liquid assets...
View all blog posts
Peruse all our blog posts to learn more about FHA, VA, and USDA home loans.
Read our blog.