FHA Loan Requirements, Limits and Approval Tips
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2023 FHA Loan Limits in New York

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For homebuyers who can’t put down a large sum of money and don’t have a high credit score, loans backed by the Federal Housing Administration (FHA) may be a good option — but there are lending limits that vary by county and property type.

For 2023, most New York counties have an FHA loan limit of $472,030 for a single-family home. However, among counties in the New York City metro area, the loan limit for a single-family home goes up to $1,089,300.

New York FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sale price
1ALBANY$472,030$604,400$730,525$907,900$350,000
2ALLEGANY$472,030$604,400$730,525$907,900$83,000
3BRONX$1,089,300$1,394,775$1,685,850$2,095,200$1,010,000
4BROOME$472,030$604,400$730,525$907,900$139,000
5CATTARAUGUS$472,030$604,400$730,525$907,900$97,000
6CAYUGA$472,030$604,400$730,525$907,900$159,000
7CHAUTAUQUA$472,030$604,400$730,525$907,900$121,000
8CHEMUNG$472,030$604,400$730,525$907,900$128,000
9CHENANGO$472,030$604,400$730,525$907,900$99,000
10CLINTON$472,030$604,400$730,525$907,900$150,000
11COLUMBIA$472,030$604,400$730,525$907,900$296,000
12CORTLAND$472,030$604,400$730,525$907,900$155,000
13DELAWARE$472,030$604,400$730,525$907,900$150,000
14DUTCHESS$472,030$604,400$730,525$907,900$370,000
15ERIE$472,030$604,400$730,525$907,900$219,000
16ESSEX$472,030$604,400$730,525$907,900$172,000
17FRANKLIN$472,030$604,400$730,525$907,900$110,000
18FULTON$472,030$604,400$730,525$907,900$140,000
19GENESEE$472,030$604,400$730,525$907,900$159,000
20GREENE$472,030$604,400$730,525$907,900$250,000
21HAMILTON$472,030$604,400$730,525$907,900$165,000
22HERKIMER$472,030$604,400$730,525$907,900$127,000
23JEFFERSON$472,030$604,400$730,525$907,900$171,000
24KINGS$1,089,300$1,394,775$1,685,850$2,095,200$1,010,000
25LEWIS$472,030$604,400$730,525$907,900$100,000
26LIVINGSTON$472,030$604,400$730,525$907,900$220,000
27MADISON$472,030$604,400$730,525$907,900$181,000
28MONROE$472,030$604,400$730,525$907,900$220,000
29MONTGOMERY$472,030$604,400$730,525$907,900$149,000
30NASSAU$1,089,300$1,394,775$1,685,850$2,095,200$1,010,000
31NEW YORK$1,089,300$1,394,775$1,685,850$2,095,200$1,010,000
32NIAGARA$472,030$604,400$730,525$907,900$219,000
33ONEIDA$472,030$604,400$730,525$907,900$127,000
34ONONDAGA$472,030$604,400$730,525$907,900$181,000
35ONTARIO$472,030$604,400$730,525$907,900$220,000
36ORANGE$472,030$604,400$730,525$907,900$370,000
37ORLEANS$472,030$604,400$730,525$907,900$220,000
38OSWEGO$472,030$604,400$730,525$907,900$181,000
39OTSEGO$472,030$604,400$730,525$907,900$154,000
40PUTNAM$1,089,300$1,394,775$1,685,850$2,095,200$1,010,000
41QUEENS$1,089,300$1,394,775$1,685,850$2,095,200$1,010,000
42RENSSELAER$472,030$604,400$730,525$907,900$350,000
43RICHMOND$1,089,300$1,394,775$1,685,850$2,095,200$1,010,000
44ROCKLAND$1,089,300$1,394,775$1,685,850$2,095,200$1,010,000
45SARATOGA$472,030$604,400$730,525$907,900$350,000
46SCHENECTADY$472,030$604,400$730,525$907,900$350,000
47SCHOHARIE$472,030$604,400$730,525$907,900$350,000
48SCHUYLER$472,030$604,400$730,525$907,900$160,000
49SENECA$472,030$604,400$730,525$907,900$136,000
50ST. LAWRENCE$472,030$604,400$730,525$907,900$95,000
51STEUBEN$472,030$604,400$730,525$907,900$120,000
52SUFFOLK$1,089,300$1,394,775$1,685,850$2,095,200$1,010,000
53SULLIVAN$472,030$604,400$730,525$907,900$201,000
54TIOGA$472,030$604,400$730,525$907,900$139,000
55TOMPKINS$472,030$604,400$730,525$907,900$250,000
56ULSTER$472,030$604,400$730,525$907,900$309,000
57WARREN$472,030$604,400$730,525$907,900$240,000
58WASHINGTON$472,030$604,400$730,525$907,900$240,000
59WAYNE$472,030$604,400$730,525$907,900$220,000
60WESTCHESTER$1,089,300$1,394,775$1,685,850$2,095,200$1,010,000
61WYOMING$472,030$604,400$730,525$907,900$140,000
62YATES$472,030$604,400$730,525$907,900$220,000

How are FHA loan limits determined?

FHA loan limits change from year to year, and they are based in part on the median price homes sold for in the previous year. The median sale price of homes nationwide went up last year; therefore, the current limit has also increased, by 12%, for 2023.

The U.S. Department of Housing and Urban Development (HUD) looks at the limits set for conventional mortgages — also known as conforming loan limits — when calculating the loan limits for FHA loans; for 2023, the conforming loan limit is $726,200.

FHA loan limits can be anywhere between 65% and 150% of the conforming loan limit. The lowest FHA loan limit is known as the “floor” and pertains to most parts of the U.S., while the highest FHA loan limit, called the “ceiling,” applies to areas that have a higher cost of living — including the counties in and around New York City. The FHA floor and ceiling for 2023 are $472,030 and $1,089,300, respectively.

Keep in mind that property type also plays a role in determining FHA loan limits. A single-family home will be subject to a lower lending limit than a multifamily home.

How to qualify for an FHA loan in New York

Homebuyers in the Empire State who want to qualify for an FHA loan will need to meet the FHA loan requirements:

A minimum 500 credit score. A credit score between 500 and 579 may qualify you for an FHA loan, but you will need to pay a 10% down payment.

A minimum 3.5% down payment. A credit score of 580 or higher can qualify you for a down payment as low as 3.5%. Check your credit score here.

Employment history. You’ll need to provide information about your jobs and income over the past two years, and you could be required to explain any gaps in employment.

Credit health. You may not qualify for an FHA loan if you have filed for bankruptcy or experienced a foreclosure in the past seven years. Similarly, if a court has ordered you to pay a debt, you must resolve that debt with your creditor before you can close on an FHA loan.

Debt-to-income (DTI) ratio of 43% or less. Your DTI ratio is the percentage of your monthly income devoted to debt repayment. To qualify for a home loan, your DTI should generally be no higher than 43% of your gross income. Exceptions for higher DTI ratios may be made if you have a high credit score or cash reserves.

Home appraisal. You’ll need to get an FHA appraisal for the property you want to purchase.

Mortgage insurance. Two kinds of FHA mortgage insurance are required. You’ll need to pay upfront mortgage insurance — 1.75% of the loan due at closing — and annual mortgage insurance — this ranges from 0.45% to 1.05% and is included in your monthly payment.

Primary residence. You must live in the home for at least one year.

Buying a multifamily property with an FHA loan

If you’re looking to purchase a multifamily home, an FHA loan might help. You will need to live in one of the units for a year, but you can still put down only 3.5% with a credit score of 580 or higher. This is a great deal, as most conventional loan programs will require at least 15%-25% down.

Another advantage of an FHA loan for a multifamily property is that you can use future rental income to qualify. If that future income significantly bumps up your income, it might make a big difference in how much money you can get from a lender.

For 2023, the multifamily loan limits in most New York counties are:

  • $604,400 for two units
  • $730,525 for three units
  • $907,900 for four units

In the New York City metro area — where the median home price is a sky-high $1,010,000 — the loan limits are higher:

  • $1,394,775 for two units
  • $1,685,850 for three units
  • $2,095,200 for four units

FHA lenders in New York

Lender nameLT ratingMinimum FHA credit score
Rocket Mortgage5 stars580
PennyMac5 stars580
Wells Fargo5 stars640
Bank of America5 starsNot disclosed

 

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