Conforming loan limits are the maximum loan amounts Fannie Mae and Freddie Mac will buy, and FHA loan limits are derived from them by a statutory formula. That is why the two numbers get mixed up, and why the mix-up can cost a buyer time. The 2026 conforming baseline does not decide your FHA maximum. The limit for the county where the home sits does.
Quick answer: For 2026, the FHA one-unit limit is $541,287 in lower-cost counties and up to $1,249,125 in high-cost areas, per HUD Mortgagee Letter 2025-23. The limit applies to the base loan amount, follows the property’s county, and does not include the financed 1.75% upfront mortgage insurance premium. Duane Buziak walks through how the numbers connect and what they mean for a Virginia buyer using an FHA purchase mortgage.
Where Conforming Loan Limits Come From
A conforming loan limit is the cap on mortgages eligible for purchase by Fannie Mae and Freddie Mac. The Federal Housing Finance Agency (FHFA) sets it each year and adjusts it with its house price index, so the number rises and falls with home prices. For 2026, FHFA set the one-unit baseline at $832,750. Confirm the current figure at fhfa.gov, since FHFA announces the next year’s limits in late fall.
There are two tiers. Most counties use the single national baseline. Counties where local home values are well above the national level are designated high-cost areas and receive a higher limit, capped at 150% of the baseline. For 2026, that ceiling is $1,249,125 for a one-unit property. Limits are set by county and property type, never by the borrower’s income, credit, or employer.
The most common misconception is that a conforming limit is itself a loan program. It is not. It is a purchase cap for two specific investors, and it matters to FHA borrowers only because Congress used it as a reference point. FHA is a separate program: the Federal Housing Administration insures the loan, and HUD publishes a dedicated FHA limit table. The rest of this article follows that table, with the conforming number serving as the starting point of the math.
How the Conforming Limit Sets the FHA Floor and Ceiling
Under the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008 (HERA), FHA’s one-unit limit in any county is tied to the conforming baseline. The floor is 65% of the baseline and the ceiling is 150%. A county’s FHA limit is set according to local median home prices, but it can never fall below the floor or rise above the ceiling. Multi-unit limits scale up from the one-unit figure.
Applying that to the 2026 baseline of $832,750 produces these FHA limits, published in HUD Mortgagee Letter 2025-23 and effective for case numbers assigned on or after January 1, 2026:
- 1-unit: $541,287 floor, $1,249,125 ceiling
- 2-unit: $693,050 floor, $1,599,375 ceiling
- 3-unit: $837,700 floor, $1,933,200 ceiling
- 4-unit: $1,041,125 floor, $2,402,625 ceiling
Source: HUD, FHA Mortgage Limits. HUD can revise these, so check the page before you rely on them. The 2025 figures ($524,225 floor and $1,209,750 ceiling for one unit) no longer apply to new case numbers.
Neighboring counties can have different limits because each county’s limit reflects its own median home price, and counties are grouped into metropolitan areas that HUD evaluates together. Two counties 15 minutes apart may sit at the floor and well above it. HUD’s FHA Mortgage Limits lookup tool returns the exact figure by state, county, and property type. Always search by the property’s county, not the county where you live now.
Richmond-Metro FHA Limits for Henrico, Chesterfield, and Hanover Buyers
Henrico, Chesterfield, Hanover, and Richmond city are not high-cost areas in the way Northern Virginia is. In recent years Richmond-area counties have generally sat at or near the floor rather than the ceiling. I have not confirmed the 2026 figure for each jurisdiction, so enter each county into the HUD lookup and use the number it returns. If a county shows $541,287 for one unit, it is at the floor.
The limit caps the base loan amount, meaning the purchase price minus your down payment. The 1.75% upfront mortgage insurance premium (UFMIP) can be financed on top of the base loan, and under HUD Handbook 4000.1 the financed UFMIP is not counted against the county limit. So a buyer with a base loan exactly at the limit can still finance the UFMIP and end up with a total loan above that number. Annual MIP is paid monthly and has no effect on the limit either.
Outside the Richmond metro, the picture shifts. Stafford County sits in the Washington, DC metro area, where limits are higher than in Richmond. DC itself is a high-cost market with a higher FHA limit as well. Florida, Tennessee, and Georgia also mix floor counties with higher-limit counties, particularly in expensive coastal and metro markets. Duane Buziak is licensed in VA, FL, TN, GA, and DC, but the rule is the same everywhere: look up the property’s county.
What a Higher or Lower Limit Does to Your Monthly Cost: A Worked Example
The limit tells you how much you can borrow. It does not tell you what the payment will be. Here is an illustration for a Henrico County purchase, well inside the limit. The rate and insurance figures are assumptions for demonstration as of October 2026, not a quote.
- Price: $400,000
- Down payment (3.5%): $14,000
- Base loan: $386,000
- Financed UFMIP (1.75%): $6,755, for a total loan of $392,755
- Principal and interest: about $2,418 per month, at an illustrative 6.25% fixed rate over 30 years
- Annual MIP (0.55%): about $177 per month, based on the $386,000 base loan in the first year
- Property tax: $283 per month, at Henrico’s $0.85 per $100 rate, assuming the assessed value equals the price ($3,400 per year; see henrico.us)
- Homeowners insurance: $150 per month, an assumed $1,800 per year
The estimated total is about $3,029 per month. County tax rates can change, so re-verify the rate with the county before you budget.
The 0.55% annual MIP applies to a specific tier: a term longer than 15 years, a base loan at or below $726,200, and a loan-to-value ratio above 95%, per HUD Mortgagee Letter 2023-05. The tier changes with loan amount, term, and LTV. For loans longer than 15 years, the rate is 0.50% when LTV is 95% or below, and the above-$726,200 tiers run 0.70% to 0.75%. Shorter terms carry lower rates, down to 0.15%. The exact tier for your loan is listed in HUD Handbook 4000.1, Appendix 1.0. The full range is 0.15% to 0.75%.
A higher limit lets you borrow more, but it also pushes you toward a higher MIP tier once the base loan crosses $726,200.
What Happens When Your Loan Exceeds the Limit
If the base loan you need is above your county’s FHA limit, you have a few real options:
- Lower the price. Search below the number that keeps the base loan under the limit.
- Increase the down payment. A larger down payment shrinks the base loan so it fits, even if the price stays the same.
- Check the property’s actual county. Limits follow the home’s location. A different county’s limit is relevant only if the property is truly there.
- Consider non-FHA financing. Some buyers whose price exceeds FHA limits explore other loan types, and that is a separate conversation.
Two mistakes come up often. The first is assuming your county’s conforming limit equals its FHA limit. In lower-cost counties the FHA floor is 65% of the baseline, so the FHA number can be far lower than the conforming one. In high-cost counties the two can be closer, but they are still calculated separately.
The second is forgetting that the county limit is not the only cap. FHA also bounds the loan by loan-to-value and the appraised value. With a 3.5% minimum down payment, the base loan generally cannot exceed 96.5% of the lesser of the sales price or appraised value. If the appraisal comes in under the price, the maximum loan drops even when the county limit would allow more.
Duane Buziak on Checking Your Limit Before You Shop
Duane Buziak recommends a fixed sequence. First, confirm the FHA limit for the county where you plan to buy. Second, set a price range that keeps the base loan under that limit with the down payment you have. Third, run the full monthly payment with UFMIP, annual MIP, property tax at the county rate, and insurance. Skipping to step three with a guessed limit is how buyers fall in love with homes that do not fit the loan.
Credit is part of the same planning. FHA generally allows a 3.5% down payment at a 580 score or higher, and a 500 to 579 score generally requires 10% down. Duane Buziak uses NoTouch Credit Pull, a soft pull with no hard inquiry, so you can see where you stand without a hit to your score before you commit to anything.
Duane Buziak is a mortgage broker, not a lender or banker. Because of that, he has access to 500+ wholesale lenders and can compare FHA options across them, while a single-shelf retail lender can show you only its own pricing. His Dare to Compare challenge invites you to bring any competing quote and test it. Where it fits a buyer’s situation, he also structures no-out-of-pocket closing options.
Common Questions About FHA and Conforming Loan Limits
What is the FHA limit in my county? Use HUD’s FHA Mortgage Limits lookup at hud.gov and search by the property’s state and county.
How do FHA and conforming limits differ? Conforming limits cap loans Fannie Mae and Freddie Mac can buy. FHA limits cap loans HUD will insure, and are calculated as 65% to 150% of the conforming baseline.
Does UFMIP count toward the limit? No. The 1.75% UFMIP can be financed on top of the base loan without counting against the county limit.
When do limits change? Generally once a year. FHFA announces conforming limits in late fall, and HUD’s FHA limits take effect for case numbers assigned on or after January 1.
Can I exceed the limit? Not with an FHA loan. You would need to lower the base loan through price or down payment.
What are the 2-4 unit limits? For 2026, the floors are $693,050, $837,700, and $1,041,125, and the ceilings are $1,599,375, $1,933,200, and $2,402,625.
What is the limit for DC? DC is a high-cost area with a higher limit than the floor. Check the HUD lookup for the current figure.
What credit score do I need? Generally 580 for 3.5% down, or 500 to 579 with 10% down.
The County Limit Governs Your FHA Purchase
The general conforming figure is context. The FHA limit for the county where the home sits is what caps your base loan, and the financed UFMIP sits outside it. Look it up, set your price range from it, then price the full payment.
Schedule your free consultation today with FHA Mortgages by Duane Buziak to confirm your county limit and run a complete payment with MIP, taxes, and insurance. Call 804-212-8663. You will get 500+ wholesale lender access, NoTouch Credit Pull, the Dare to Compare pricing challenge, and no-out-of-pocket closing options, along with competitive rates and expert guidance on the path to your new home. FHA Mortgages by Duane Buziak is at 4860 Cox Rd, Glen Allen, VA 23060, and serves buyers in VA, FL, TN, GA, and DC.
