The Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD), has announced updated loan limits for its Single Family Title II forward and Home Equity Conversion Mortgage (HECM) insurance programs for 2026. The changes, which reflect continued increases in home prices over the past year, will see higher loan limits in most areas.
FHA adjusts its annual loan limits using a formula outlined in the National Housing Act. This calculation uses home sale data from counties or Metropolitan Statistical Areas to determine new limits for three cost categories defined by law. According to FHA, "This floor applies to those areas where 115 percent of the median home price is less than the floor limit. Any area where the loan limit exceeds this floor is considered a high-cost area. In these areas, FHA establishes varying loan limits above the floor based on the respective median home prices in each area." The maximum ceiling for a one-unit property in high-cost areas is set at 150 percent of the national conforming loan limit.
Loan limits are also specifically adjusted for Alaska, Hawaii, Guam, and the U.S. Virgin Islands to reflect higher construction costs.
For HECM loans—commonly known as reverse mortgages—the maximum claim amount will rise from $1,209,750 in 2025 to $1,249,125 starting January 1, 2026. This applies nationwide and includes special exception regions such as Alaska and Hawaii.
A full list of FHA loan limits and details about areas at or between the floor and ceiling can be found on FHA's Loan Limits Page.
