Home LoansFHA Loans: What You Need to Know in 2021
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2021 FHA Loan Limits in Connecticut

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The federal government has set the maximum amount an Connecticuter homebuyer can borrow with an FHA loan between $356,362 and $601,450 for a single-family home, depending on which county the property is located in. The lower number applies to less expensive rural areas, while folks in New York City-adjacent urban areas, including Stamford and Bridgeport, might be able to qualify for more than $600,000.

Dreaming about buying a house in Connecticut? This may be the perfect time to make the leap. And thanks to the Federal Housing Administration (FHA), some Connecticuters can qualify for federally backed loans to help get them into a new house. This year, residents will be able to borrow even more with an FHA loan in some areas to make their home buying dreams come true.

Connecticut FHA loan limits by county

FHA Loan Limits in Connecticut
County Name One-Family Two-Family Three-Family Four-Family Median Sale Price
Fairfield $601,450 $769,950 $930,700 $1,156,650 $500,000
Hartford $356,362 $456,275 $551,500 $685,400 $280,000
Litchfield $357,650 $457,850 $553,450 $687,800 $270,000
Middlesex $356,362 $456,275 $551,500 $685,400 $280,000
New Haven $356,362 $456,275 $551,500 $685,400 $253,000
New London $356,362 $456,275 $551,500 $685,400 $254,000
Tolland $356,362 $456,275 $551,500 $685,400 $280,000
Windham $364,550 $466,700 $564,100 $701,050 $317,000

How are FHA loan limits determined?

The U.S. Department of Housing and Urban Development (HUD) sets limits on how expensive a house the FHA will insure in each county in the United States. These limits are set based on the current year’s conforming loan limit — or how large of a mortgage Fannie Mae and Freddie Mac will purchase. In 2021, that conforming limit is $548,250, up roughly $38,000 from 2020’s limit of $510,400.

The FHA “floor” is the largest mortgage the agency will issue in most of the country and is 65% of the conforming loan limit. In 2021, the FHA floor is set at $356,362, an increase of about $24,600 above the 2020 limit of $331,760.

The FHA “ceiling” is a higher limit that only applies to high-cost areas. This is set at 150% of the conforming loan limit, or $822,375 for single-family homes. With a few exceptions, this is generally the largest mortgage amount the agency will insure for a single-family home. In many parts of the country, loan limits fall somewhere between the FHA floor and ceiling.

Outside of the lower 48 states, FHA maximum loan limits are higher because of more expensive construction costs. These include the special exception areas of Alaska, Hawaii, Guam and the U.S. Virgin Islands.

Here are the 2021 standard FHA limits for all property types:

  • One-unit: $356,362
  • Two-unit: $456,275
  • Three-unit: $551,500
  • Four-unit: $685,400

Here are the 2021 standard FHA limits for high-cost areas:

  • One-unit: $822,375
  • Two-unit: $1,053,000
  • Three-unit: $1,272,750
  • Four-unit: $1,581,750

Do you qualify for an FHA loan in Connecticut?

FHA loans are a great deal for qualified buyers, thanks to lower down payments and closing costs. Find out if your credit score and income will help you qualify for one of these loans.

 

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