2021 FHA Loan Limits in Rhode Island
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The federal government has set the maximum FHA loan limit in Rhode Island to $506,000 for a single-family home.
If you’re thinking about owning or refinancing a home in the Ocean State, this may be the year to do it. And thanks to the Federal Housing Administration (FHA), some Rhode Island residents can qualify for federally backed loans with lower credit score and down payment requirements. This year, current and aspiring Rhode Island homeowners will be able to borrow even more with an FHA loan in some areas to make their homebuying or refi goals a reality.
Rhode Island FHA loan limits by county
|FHA Loan Limits in Rhode Island|
|County Name||One-Family||Two-Family||Three-Family||Four-Family||Median Sale Price|
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