2023 FHA Loan Limits in Connecticut
In Connecticut, the 2023 Federal Housing Administration (FHA) loan limits range between $472,030 to $707,250 for a single-family home, depending on the county. The lower number applies to less-expensive counties, while folks in New York-adjacent urban areas might be able to qualify for the higher loan limit. Here’s more of what you should know about FHA loan limits and how to qualify for an FHA loan in Connecticut.
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Connecticut FHA loan limits by county
| County name | One unit | Two unit | Three unit | Four unit | Median sale price |
|---|---|---|---|---|---|
| FAIRFIELD | $707,250 | $905,400 | $1,094,450 | $1,360,100 | $615,000 |
| HARTFORD | $472,030 | $604,400 | $730,525 | $907,900 | $345,000 |
| LITCHFIELD | $472,030 | $604,400 | $730,525 | $907,900 | $305,000 |
| MIDDLESEX | $472,030 | $604,400 | $730,525 | $907,900 | $345,000 |
| NEW HAVEN | $472,030 | $604,400 | $730,525 | $907,900 | $306,000 |
| NEW LONDON | $472,030 | $604,400 | $730,525 | $907,900 | $309,000 |
| TOLLAND | $472,030 | $604,400 | $730,525 | $907,900 | $345,000 |
| WINDHAM | $472,030 | $604,400 | $730,525 | $907,900 | $400,000 |
How are FHA loan limits determined?
FHA loan limits are calculated each year based on a percentage of conforming loan limits for conventional mortgages. The U.S. Department of Housing and Urban Development (HUD) sets the lowest FHA loan limit — the FHA “floor” — at 65% of the $726,200 conforming loan limit, which comes out to $472,030 for a one-unit home in 2023. It’s the maximum FHA loan amount allowed on single-family homes for most of the nation.
The FHA “ceiling” is 150% of the conforming loan limit and only applies to high-cost areas, which allows borrowers to buy single-family homes worth up to $1,089,300 in expensive parts of the U.S. The loan limits can change based on increases or decreases in average national home prices in the prior year. Fairfield is the only county in Connecticut eligible for the high-cost FHA loan amount of $707,250.
How to qualify for an FHA loan in Connecticut
Connecticut FHA loans can help homebuyers who have lower credit scores and less cash to qualify for a mortgage. With median home prices topping out at $615,000 in the most expensive Connecticut county, the higher FHA limits come in handy.
Whether you’re a first-time or repeat buyer, you’ll need to meet the following FHA loan requirements:
- Down payment and credit scores: You may qualify for an FHA loan with a 3.5% down payment if you have a 580 credit score or higher. Buyers with lower scores (down to 500) will need to make 10% down payments.
- Debt-to-income (DTI) ratio: A DTI ratio shows your monthly debt spending compared to your income. Lenders typically require that your DTI is less than 43%, although you may find exceptions.
- Mortgage insurance: FHA loans require two types of mortgage insurance. The annual mortgage insurance premium (MIP) costs 0.45% to 1.05% of your loan amount. The upfront mortgage insurance premium (UFMIP) costs 1.75% of your loan amount. Both are typically financed into the mortgage.
- Occupancy. You’ll need to live in a home financed with an FHA loan for at least 12 months after you buy it.
- An FHA home appraisal: If you’re buying a home with an FHA loan, you’ll need an FHA home appraisal to determine your home’s value.
Buying a multifamily property with an FHA loan
FHA guidelines allow you to buy a multifamily home with a 3.5% down payment. The property can have up to four separate living units, and — as long as you live in one of those units — you could rent out the other units without needing an investment property mortgage. An added bonus: You may be able to qualify using the rental income on the rented units.
FHA lenders in Connecticut
| Lender name | LT rating | Minimum FHA credit score |
|---|---|---|
| Flagstar Mortgage | 5 stars | 580 |
| Rocket Mortgage | 5 stars | 580 |
| PenFed Mortgage | 3 stars | 620 |
| Churchill Mortgage | 3 stars | 620 |
| Guild Mortgage | 3 stars | 540 |