FHA Loan Requirements, Limits and Approval Tips
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2022 FHA Loan Limits in Connecticut

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In Connecticut, FHA loans range between $420,680 to $695,750 for a single-family home, depending on the county. The lower number applies to less-expensive rural areas, while folks in New York-adjacent urban areas might be able to qualify for close to $700,000.

Connecticut FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
NEW HAVEN$420,680$538,650$651,050$809,150$285,000
NEW LONDON$420,680$538,650$651,050$809,150$290,000

How are FHA loan limits determined?

FHA loan limits are calculated based on the limits for conventional mortgages, which are called conforming loan limits. The U.S. Department of Housing and Urban Development (HUD) sets the lowest FHA loan limit —  the FHA “floor” — as 65% of the conforming loan limit. It’s the maximum FHA loan amount allowed on single-family homes for most of the nation. The FHA “ceiling” is 150% of the conforming loan limit and only applies to high-cost areas.

The loan limits can change annually. They hiked up by 18% for 2022, to reflect the increase in the average national home price last year.

How to qualify for an FHA loan in Connecticut

Connecticut FHA loans can help homebuyers who have lower credit scores and less cash to qualify for a mortgage. If this is your first time buying a home, you could qualify for further help from Connecticut’s first-time homebuyer programs.

Whether you’re a first-time or repeat buyer, here are the FHA loan requirements you’d need to meet:

  • A mortgage amount that is under the FHA loan limit for the area: The amount you borrow can’t be higher than the local FHA limit. If you want a more expensive house, you could make up the difference with a larger down payment.
  • A minimum 3.5% down payment: You could qualify to make only a 3.5% down payment on an FHA loan if you have a 580 credit score or higher. Buyers with a lower score will need to make a 10% down payment.
  • A minimum 500 credit score: You may be able to qualify for an FHA loan with a credit score in the low 500s, provided you can make a minimum 10% down payment. Check your credit score here.
  • A debt-to-income (DTI) ratio of 43% or less: A DTI ratio shows your monthly debt spending compared to your income. Lenders typically require that your DTI is less than 43%, although you may find exceptions.
  • An FHA home appraisal: If you’re getting an FHA loan, you’ll also need to get an FHA home appraisal to determine your home’s value.
  • Mortgage insurance: FHA loans require two types of mortgage insurance. The annual mortgage insurance premium (MIP) costs 0.45% to 1.05% of your loan amount. The upfront mortgage insurance premium (UFMIP) costs 1.75% of your loan amount. Both are typically financed into the mortgage.

Buying a multifamily property with an FHA loan

You could purchase a multifamily home with an FHA loan. The property can have up to four separate living units and — as long as you live in one of those units — you could rent out the other units without needing an investment property mortgage. The same FHA loan requirements apply to multifamily properties.

FHA lenders in Connecticut

Here are five highly rated mortgage lenders that are licensed in Connecticut.

Lender name  LT rating  Minimum credit score for an FHA mortgage
Lower Mortgage 10 / 10 580
Rocket Mortgage 9.5 / 10 580
Better Mortgage 9.5 / 10 620
Guild Mortgage 9 / 10 540
AmeriSave Mortgage 8 / 10 600

Compare FHA Loans for Free

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