FHA Home Loan

What is the Federal Housing Administration (FHA)?

The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development (HUD). FHA loans were designed to make home ownership more accessible for the average American. This is accomplished by providing FHA mortgage insurance on loans made by FHA-approved lenders.

Since FHA loans are insured by the federal government, if a property owner defaults on an FHA loan, the FHA pays a claim to the lender for the unpaid principal balance. This allows mortgage lenders to offer more mortgages to homebuyers who may not be in the best risk bracket.

What Are FHA Loan Limits?

The FHA only insures loans up to a certain amount, which is the maximum FHA lending limit. FHA loan limits are recalculated and updated every year. They are heavily influenced by limits set by Fannie Mae and Freddie Mac for “conforming” or conventional loans.

FHA limits vary based on county, and there is both a floor and a ceiling for different types of homes. For 2025, the minimum FHA loan amount was set at $524,225 for single-family home loans, and the maximum amount was set at $1,209,750 for FHA loans on single-family homes.

Applying For FHA Loans in WA, OR, CO, CA or ID

Now is a great time for looking into a FHA mortgage. You can use our free Instant Rate Quote tool and Rate Tracker to find out how much you could be saving every month or over the life of your loan.