Loan limits are the ceiling on how much you can borrow under FHA and conforming (Fannie Mae/Freddie Mac) programs — and they scale with the number of units. If you are shopping duplexes or fourplexes, the limits define your maximum purchase price at each down payment level.
How the Limits Are Set
Each November, the Federal Housing Finance Agency (FHFA) announces conforming limits for the following year, based on national home price appreciation. FHA limits are set at 65% of the conforming limit, with a floor and a ceiling for high-cost areas.
The Structure of the Limits
Limits rise with unit count because larger buildings cost more:
| Units | Baseline (standard counties) | High-cost ceiling |
|---|---|---|
| 1 unit | Lowest | ~1.5× baseline |
| 2 units (duplex) | Higher | ~1.5× baseline |
| 3 units (triplex) | Higher still | ~1.5× baseline |
| 4 units (fourplex) | Highest | ~1.5× baseline |
Important: the limit applies to the loan amount, not the purchase price. With FHA's 3.5% minimum down, the maximum purchase price is roughly the limit ÷ 0.965 (plus financed UFMIP).
What This Means in Practice
In a baseline-cost county (illustrative 2026-style figures):
- A fourplex limit around $1.45M conforming / ~$940K FHA supports enormous purchase power
- Even in the lowest-limit counties, fourplex limits typically exceed $800K conforming
In high-cost metros (San Francisco, New York, Los Angeles), fourplex ceilings approach $2M+ conforming. For most 2-4 unit buyers, the limit is rarely the binding constraint — the down payment and self-sufficiency test are. But verify your county before assuming.
How to Check Your County's Exact Limits
- Search "FHFA conforming loan limits map" for the current year
- Use Fannie Mae's or FHA's official lookup tool with your county name
- Confirm with your lender — they verify limits on every pre-approval
Limits vs. Jumbo: The Crossover
If your needed loan exceeds the limit for your unit count, you are in jumbo territory:
- Jumbo loans typically require 20-25% down on 2-4 units, 700+ credit, and 6-12 months of reserves
- Jumbo rates are sometimes competitive with conforming, but underwriting is stricter
- On a fourplex priced above the limit, options include a larger down payment, a portfolio loan, or splitting the financing
Worked Example: Fourplex at the Baseline Limit
Assume a fourplex conforming limit of $1,450,000 (illustrative):
- Max conforming loan: $1,450,000
- At 25% down (investor conventional): max price ≈ $1,933,000
- At 20% down (owner-occupied conventional): max price ≈ $1,812,500
- FHA (owner-occupied, 3.5% down, if within FHA limit): max price ≈ $975,000 before UFMIP
The practical takeaway: on 2-4 unit owner-occupied purchases, loan limits almost never stop you — savings, DTI, and (for FHA 3-4 unit) the self-sufficiency test do.
Other Limits That Actually Bite
- FHA self-sufficiency test on 3-4 units (75% of market rent must cover PITI)
- Conventional multi-unit down payments: 3-5% on 1-2 units owner-occupied, but 20-25% on 3-4 units for most conventional programs
- Reserve requirements: 2-6 months of PITIA depending on unit count and occupancy
- The 10-financed-property cap on conventional loans — after that, DSCR and portfolio lending take over
Size Your Deal Correctly
Enter your target price, down payment, and unit count in the First-Time Homebuyer Mortgage Calculator to see the exact loan amount and whether it fits comfortably under your county's limit — before you fall in love with a building you cannot finance.