FHA loans are a popular financing option for many homebuyers due to their low-down payment requirements and flexible credit score standards. However, the amount you can borrow through an FHA loan is limited by FHA loan limits, which can vary by location and property type. In this article, we'll explore what FHA loan limits are and how they can impact your homebuying journey.

FHA loan limits are the maximum loan amounts that can be borrowed through an FHA loan in a specific area. These limits are determined by the Federal Housing Administration (FHA) and are based on the median home price in a given location. FHA loan limits can vary by county, and they can also be different for single-family homes, duplexes, triplexes, and four-unit properties.

For example, in 2023, the FHA loan limit for a single-family home in most counties in Idaho is $472,030. However, in high-cost areas such as Blaine & Teton, the loan limit is $740,600, and in the Boise Metro area, it is as high as $586,500. This means that if you're looking to purchase a home in a high-cost area, you may need to look for alternative financing options if your loan amount exceeds the FHA loan limit.

It's important to note that FHA loan limits in Idaho, can impact the amount of down payment you need to make. In most cases, you'll need to make a down payment of at least 3.5% of the purchase price of the home. However, if the home you're looking to purchase exceeds the FHA loan limit for your area, you may need to make a higher down payment to qualify for financing.

But don’t forget, in Idaho, there is the potential of getting down payment assistance and down payment grants, which are available to first time home buyers and second time home buyers.

FHA loan limits can impact the amount of financing you're eligible for when purchasing a home. By understanding the FHA loan limits for your area and property type, you can make informed decisions about your homebuying journey and explore alternative financing options if necessary. Working with a knowledgeable lender can also help you navigate the complex world of FHA loans and ensure you're making the most of your financing options.  Below is a chart of each county and metro area in Idaho, that shows the FHA loan limit for each county.