FHA Loan Requirements, Limits, How to Apply and Best Lenders
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FHA Loan Limits in Maryland

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Content was accurate at the time of publication.
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Maryland homebuyers looking for the flexibility of a home loan backed by the Federal Housing Administration (FHA) can purchase up to $472,030 for a single-family home in most Maryland counties. However, the FHA loan limit rises to $632,500 for most counties in the Baltimore metro area and rises to $1,089,300 for Maryland counties in the Washington, D.C. metro area.

Maryland FHA loan limits by county

County nameOne unitTwo unitThree unitFour unitMedian sale price
ALLEGANY$472,030$604,400$730,525$907,900$151,000
ANNE ARUNDEL$632,500$809,700$978,750$1,216,350$550,000
BALTIMORE$632,500$809,700$978,750$1,216,350$550,000
BALTIMORE CITY$632,500$809,700$978,750$1,216,350$550,000
CALVERT$1,089,300$1,394,775$1,685,850$2,095,200$1,053,000
CAROLINE$472,030$604,400$730,525$907,900$231,000
CARROLL$632,500$809,700$978,750$1,216,350$550,000
CECIL$529,000$677,200$818,600$1,017,300$460,000
CHARLES$1,089,300$1,394,775$1,685,850$2,095,200$1,053,000
DORCHESTER$472,030$604,400$730,525$907,900$215,000
FREDERICK$1,089,300$1,394,775$1,685,850$2,095,200$1,053,000
GARRETT$472,030$604,400$730,525$907,900$199,000
HARFORD$632,500$809,700$978,750$1,216,350$550,000
HOWARD$632,500$809,700$978,750$1,216,350$550,000
KENT$472,030$604,400$730,525$907,900$255,000
MONTGOMERY$1,089,300$1,394,775$1,685,850$2,095,200$1,053,000
PRINCE GEORGE'S$1,089,300$1,394,775$1,685,850$2,095,200$1,053,000
QUEEN ANNE'S$632,500$809,700$978,750$1,216,350$550,000
SOMERSET$472,030$604,400$730,525$907,900$383,000
ST. MARY'S$472,030$604,400$730,525$907,900$350,000
TALBOT$472,030$604,400$730,525$907,900$360,000
WASHINGTON$472,030$604,400$730,525$907,900$258,000
WICOMICO$472,030$604,400$730,525$907,900$383,000
WORCESTER$472,030$604,400$730,525$907,900$383,000

How are FHA loan limits determined?

Each year the Federal Housing Finance Agency sets FHA loan limits based on percentages of the national conforming loan limit. There are two FHA loan limits: a floor and a ceiling. The national conforming loan limit for a one-unit property is $726,000, so the FHA floor is $472,030, which is 65% of the national conforming loan limit.

The FHA applies the floor limit to areas where 115% of the median home price falls below the floor limit. If the median home prices exceed the floor limit, the FHA deems the region a high-cost area and sets the loan limits based on that area’s median home prices. The FHA has a maximum loan limit, or ceiling, for high-cost areas that is 150% of the national conforming loan limit. That ceiling amount is $1,089,300.

How to qualify for an FHA loan in Maryland

Maryland homebuyers may prefer FHA loans because of the less stringent requirements to qualify, compared to conventional loans.

Here’s the requirements for an FHA loan in the Old Line State:

  • Credit score and down payment: For homebuyers paying a 10% down payment, the minimum credit score requirement is 500. If the down payment is only 3.5%, the minimum credit score requirement is 580.
  • Debt-to-income (DTI) ratio: Mortgage lenders evaluate your debt-to-income ratio which looks at your monthly debt payments versus your monthly gross income. The maximum DTI for an FHA loan is 43%.
  • Mortgage insurance: Homebuyers are required to pay for mortgage insurance, which protects the lender’s costs if the borrower defaults on the loan. FHA homebuyers are required to pay two types of mortgage insurance, the first of which is upfront mortgage insurance, which is 1.75% of your loan amount and due at closing. The second is an annual mortgage insurance premium, which can range from 0.15% to 0.75% of the loan.
  • Occupancy: You must live in the home you purchase with an FHA home loan for at least 12 months.
  • FHA home appraisals: Homes purchased with an FHA loan are required to undergo an appraisal that verifies the value of the home. FHA appraisal guidelines are stricter than appraisals with conventional home loans.

Buying a multifamily property with an FHA loan

For homebuyers also interested in investing in real estate, you can buy a multifamily home with an FHA loan. Borrowers can use an FHA loan on a property with a maximum of four units with a down payment of just 3.5%. However, the borrower must occupy one of the units as their primary residence.

FHA lenders in Maryland

Lender nameLT ratingMinimum FHA credit score
Flagstar Bank5 out of 5580
Better Mortgage5 out of 5580
Rocket Mortgage5 out of 5580
PennyMac5 out of 5580
Homepoint Mortgage4 out of 5580