FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Maryland

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Home loans backed by the Federal Housing Administration (FHA) offer lower stringent credit and down payment requirements, but they also come with loan limits. In 2022, FHA loan limits in Maryland vary by county. In most counties, the limit is $420,680. The limit rises to $431,250 in Talbot County, $477,250 in Cecil, and $583,050 in Anne Arundel, Baltimore, Baltimore City, Carroll, Harford, Howard and Queen Anne’s. The highest limit, $970,800, applies to Calvert, Charles, Federick, Montgomery and Prince George’s counties.

Maryland FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
ALLEGANY$420,680$538,650$651,050$809,150$146,000
ANNE ARUNDEL$583,050$746,400$902,250$1,121,250$507,000
BALTIMORE$583,050$746,400$902,250$1,121,250$507,000
BALTIMORE CITY$583,050$746,400$902,250$1,121,250$507,000
CALVERT$970,800$1,243,050$1,502,475$1,867,275$975,000
CAROLINE$420,680$538,650$651,050$809,150$224,000
CARROLL$583,050$746,400$902,250$1,121,250$507,000
CECIL$477,250$610,950$738,500$917,800$415,000
CHARLES$970,800$1,243,050$1,502,475$1,867,275$975,000
DORCHESTER$420,680$538,650$651,050$809,150$196,000
FREDERICK$970,800$1,243,050$1,502,475$1,867,275$975,000
GARRETT$420,680$538,650$651,050$809,150$205,000
HARFORD$583,050$746,400$902,250$1,121,250$507,000
HOWARD$583,050$746,400$902,250$1,121,250$507,000
KENT$420,680$538,650$651,050$809,150$233,000
MONTGOMERY$970,800$1,243,050$1,502,475$1,867,275$975,000
PRINCE GEORGE'S$970,800$1,243,050$1,502,475$1,867,275$975,000
QUEEN ANNE'S$583,050$746,400$902,250$1,121,250$507,000
SOMERSET$420,680$538,650$651,050$809,150$325,000
ST. MARY'S$420,680$538,650$651,050$809,150$328,000
TALBOT$431,250$552,050$667,350$829,350$375,000
WASHINGTON$420,680$538,650$651,050$809,150$230,000
WICOMICO$420,680$538,650$651,050$809,150$325,000
WORCESTER$420,680$538,650$651,050$809,150$325,000

How are FHA loan limits determined?

FHA loan limits are set each year by the U.S. Department of Housing and Urban Development (HUD). Since the Federal Housing Administration (FHA) backs the loans, the loan amounts are based on conforming loan limits, which are determined by the median house prices throughout the U.S.

The lowest FHA loan limit, also called the “floor,” is 65% of the conforming loan limits, while the highest limit, or “ceiling,” is 150% of the conforming loan limit. The cost of living in an area determines whether the floor or ceiling is applicable to a selected area.

In 2022, the FHA loan floor for single-family homes is $420,680. The ceiling for loans in high-cost areas in 2022 is $970,800.

How to qualify for an FHA loan in Maryland

FHA loans can help borrowers with lower credit and less money stashed away for a down payment afford a home, but you still must meet minimum requirements. And if this is your first time buying a home, you might be able to find further help from Maryland’s first-time homebuyer programs.

Even if it’s not your first time buying a home, you’ll still need to meet the requirements for an FHA loan:

  • A qualifying purchase price. The property’s price can’t exceed the county limits.
  • Minimum 500 credit score. Each lending institution has its own minimums, but an FHA borrower can never have a minimum credit score below 500. Check your credit score here.
  • 3.5% down payment. If you have a credit score of 580 or above, you can pay as little as 3.5% down with an FHA loan.
  • FHA appraisal. Properties purchased with an FHA loan must have both a home inspection and an FHA-approved home appraisal. These are done at once with the FHA-approved appraiser.
  • A debt-to-income ratio of 43% or less. A DTI ratio is the amount you spend towards debt payments compared to your overall income. Most lenders look for a DTI ratio of 43% or less.
  • Mortgage insurance. FHA borrowers must pay two types of mortgage insurance: an upfront mortgage insurance premium (UFMIP) of 1.75% and an annual mortgage insurance premium (MIP) ranging from 0.45% to 1.05%.
  • Occupancy. If you buy a home with an FHA loan, it must be your primary residence for at least 12 months after purchase.

Buying a multifamily property with an FHA loan

FHA loans can also help those who want to buy a multifamily home of up to four units. As long as you live in one unit of the multifamily home for at least 12 months after purchase, the same FHA eligibility requirements still apply, including a 3.5% down payment.

FHA lenders in Maryland

Here are seven highly rated mortgage lenders in Maryland.

Lender name LT rating Minimum FHA credit score 
Lower10/10580
Veterans United10/10620
Rocket Mortgage9.5/10580
Guild Mortgage9/10540
PennyMac9/10620

 

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