Federal Housing Administration sets loan limits for 2026

The Federal Housing Administration has officially established the 2026 limits for loans that it insures, including traditional products and those originated through its reverse mortgage program.

The administration set the core limits for single-unit properties in low- and high-cost areas at $541,287 and $1,249,125, respectively. Those limits are based on 65% and 150% of the core 2026 conforming limit of $832,750, which the separate Federal Housing Finance Agency set in November.

Floor and ceiling limits, which correlate to low- and high cost areas, go up to $1,041,125 and $2,402,625, respectively, for four-unit properties. FHA has more detailed limits at the regional level available through a searchable online tool. Some areas, such as Hawaii, exceed the ceiling.

The limit and outlook for HECMs

The maximum claim amount for reverse mortgages, which allow adults age 62 and up to withdraw home equity, is set based on 150% of the conforming limit or $1,249,125; but in contrast to traditional home loans, there are no exceptions for areas like Hawaii.

The FHA is currently re-examining its reverse mortgage program and on Thursday extended a request for feedback on it to Jan. 5. The program allows borrowers to keep living in the properties while they withdraw equity, so long as they can maintain the property and related expenses such as taxes and insurance.

FHA's Home Equity Conversion Mortgage program has gone through several changes and reforms. One the industry has been awaiting word on related to securitization-based buyout loan relief has been pending amid the changeover in administration.