Ever wondered why one lender says your Greenwood purchase fits a standard loan while another calls it a jumbo? You are not alone. Loan limits shape which mortgage programs you can use, what rates you may see, and how much you can borrow on different property types. In a few minutes, you can learn how limits work, where to look them up, and what to confirm with your lender so you can shop with confidence. Let’s dive in.
What loan limits mean
Loan limits set the maximum loan size that certain programs will insure or buy. If you stay within the limit, you can use that program’s standard terms. If you go over, you may move into a different category, often called jumbo, which can come with different underwriting and pricing.
- Conforming loans: Mortgages that meet Fannie Mae or Freddie Mac guidelines and the limit set for your county and unit count.
- FHA loans: Mortgages insured by the Federal Housing Administration, with county-based limits for 1 to 4 units.
Staying under the applicable limit can help you access more familiar underwriting, down payment options, and often more competitive pricing.
FHA vs. conforming at a glance
- Conforming: Set by the Federal Housing Finance Agency (FHFA). Limits vary by county and number of units. Some counties are designated as high cost, which allows higher limits.
- FHA: Published by the U.S. Department of Housing and Urban Development (HUD). Limits vary by county and by 1 to 4 units. FHA also sets floors and ceilings nationwide.
If your required loan amount is above the conforming cap for your county and unit count, you will need jumbo financing or a different program. Always confirm with your lender.
Who sets limits and where to check
- FHFA sets conforming limits each year. Use the FHFA Conforming Loan Limits tools to look up your county by map, state, or zip and select your unit count.
- HUD/FHA publishes annual county-level FHA mortgage limits. Use the FHA lookup tool to select state and county, then review the 1-unit through 4-unit table.
- Fannie Mae and Freddie Mac publish program rules and definitions, including how high-cost designations work. These resources explain occupancy and property-type guidelines that can affect underwriting.
Tip: Save the official lookup pages and always check the current year. Limits update annually.
Why limits change each year
- FHFA adjusts conforming baseline limits based on changes in home prices, guided by its House Price Index and statutory rules. High-cost areas can have higher limits.
- HUD updates FHA limits at least annually using local housing data. Limits vary by county and are set separately for 1 to 4 units.
- Other drivers include local price swings, federal policy changes, and rare adjustments after major events.
Because limits change, avoid relying on old numbers you find online. Use the official tools and confirm with your lender before you write an offer.
How unit count changes your ceiling
Both FHA and conforming limits are published for 1, 2, 3, and 4 units. Multi-unit properties have higher limits than single-unit homes.
- FHA: Separate limits for each unit count per county. For a 2 to 4 unit purchase, FHA generally requires you to live in one unit as your primary residence.
- Conforming: Limits also scale with unit count. Owner-occupied and investment options exist, but occupancy and property type affect qualification and pricing.
Always pick the limit that matches the actual unit count of the property you plan to finance.
Step-by-step: check Greenwood and nearby counties
Prepare these details:
- Property address, or at least county and state
- Property type and unit count: 1, 2, 3, or 4 units
- Your target purchase price and planned loan amount
Then follow these steps:
For conforming limits (FHFA)
- Visit the FHFA Conforming Loan Limits page.
- Use the interactive map or the county or zip lookup to find your county.
- Note the limit that matches your property’s unit count. Check if the county is listed as high cost.
For FHA limits (HUD)
- Visit the FHA Mortgage Limits lookup.
- Select the state and county for the property.
- Review the table for 1 to 4 units and note the correct limit.
Cross-check and decide
- Compare your planned loan amount to both the conforming and FHA limits for the correct county and unit count.
- If the amount exceeds the conforming limit, you are in jumbo territory for conforming products. Ask your lender about jumbo options and how pricing and underwriting will differ.
County lines matter around Greenwood
Greenwood purchases often sit near county borders. Limits are county-specific, not city-specific, so a property a few blocks away across a county line can have a different ceiling. Always verify the correct county before you compare limits.
This is especially important if you are evaluating both single-family homes and small multi-unit properties. The right county and unit count combine to set your maximum loan amount under each program.
Common scenarios for local buyers and investors
- First-time buyer targeting a single-family home: Check both FHA and conforming limits. If you prefer FHA’s features, confirm the FHA limit for the property’s county. If your down payment is stronger, a conforming loan might fit your goals.
- House hacker purchasing a 2 to 4 unit: Higher limits may help you finance a duplex, triplex, or fourplex. For FHA, plan to occupy one unit as your primary residence. Ask your lender to price both FHA and conforming options.
- Investor purchasing a rental home: Conforming loans offer options for investment properties, but underwriting and pricing differ from owner-occupied loans. Compare your loan amount to the conforming limit and ask about lender overlays.
Properties with special rules
- Condos and manufactured homes: FHA and the agencies have additional eligibility and approval requirements for these property types. Project or unit approvals can be required beyond simple loan-limit checks.
- VA and USDA: These programs do not follow the same loan-limit model as FHA or conforming. VA uses entitlement rules and some county considerations. USDA focuses on property eligibility and income limits.
If your property falls into one of these categories, bring that up early with your lender so they can verify program eligibility.
Your quick checklist
Bring this to your lender conversation:
- County and state, or full property address
- Unit count: 1, 2, 3, or 4
- Property type: single-family, condo, co-op, or manufactured home
- Planned occupancy: primary residence, second home, or investment
- Target purchase price, down payment, and desired loan amount
Smart questions to ask your lender
- What is the current conforming loan limit for this county and unit count?
- What is the current FHA limit for this county and unit count?
- If my loan amount is $X, does it fit within conforming or FHA limits, or is it a jumbo loan?
- Are there lender overlays or condo or manufactured home approvals that could affect this property?
- Will this loan be sold to Fannie Mae or Freddie Mac, insured by FHA, or treated as a jumbo? How will that affect rate and underwriting?
Final takeaways for Greenwood buyers
Loan limits affect the programs you can use, the rate you may pay, and how much you can borrow on 1 to 4 unit properties. The exact ceiling depends on your county and unit count, and it updates each year. Use the FHFA and FHA lookup tools, then confirm with your lender before you make an offer. If you are comparing single-family and small multi-unit options, make sure you are using the correct limit for each scenario.
Ready to run the numbers and line up a solid plan for your Greenwood purchase or small multi-unit? Contact Kelly for local guidance and a lender introduction that fits your goals. Reach out to Mad Chase Real Estate to get started.
FAQs
What are conforming loan limits for Greenwood homebuyers?
- Conforming limits are the maximum loan amounts that Fannie Mae and Freddie Mac can buy for a given county and unit count. Use the FHFA lookup and confirm with your lender.
How do FHA loan limits work in Johnson and Marion Counties?
- FHA publishes county-based limits for 1 to 4 units. Look up the correct county and unit count in the FHA table, then verify the current year’s numbers with your lender.
How do I know if I need a jumbo loan in Greenwood?
- If your required loan amount is above the conforming limit for your county and unit count, you will need jumbo financing or another program. Ask your lender to compare options.
Do FHA and conforming loan limits match for the same property?
- Not always. FHA and conforming limits are set independently and can differ by county and unit count. Check both before you choose a program.
Can I buy a duplex with FHA in Greenwood?
- Yes, FHA insures loans on 2 to 4 unit properties, but you generally must live in one unit as your primary residence. Confirm current FHA occupancy rules with your lender.
Do condos or manufactured homes follow different rules?
- Yes. Both FHA and the agencies have separate eligibility and approval criteria for condos and manufactured homes that can affect financing beyond the numeric limit.
Why do loan limits change every year?
- FHFA and HUD update limits based on changes in home prices and federal policy. That is why you should always check the latest year’s tables.
What if a property sits near a county line around Greenwood?
- Loan limits are county-specific. Two nearby homes across a county line can have different limits, so verify the correct county before you compare programs.
