Limits & Costs
2026 FHA Loan Limits: How High Can You Go in Your County?
FHA loan limits rose for 2026, with a floor of $541,287 and a ceiling of $1,249,125. Here's how to find your limit and why it matters.
December 12, 2025 · 6 min read
Down Payment Assistance
FHA Down Payment Assistance — 2.5%, 3.5%, or 5%.
The FHA DPA, offered through Simply Approved Mortgages, is a repayable 10-year fixed second lien that layers on top of a 30-year fixed FHA first mortgage. Use it for your down payment, closing costs, or prepaids — no income cap, no first-time buyer requirement.
Tiers
2.5% · 3.5% · 5%
Min FICO
580
2nd-lien term
10 yrs fixed
Get pre-qualified with DPA
Speak with a licensed FHA broker about your down payment options.
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Your info2
Loan detailsQuick answer
Can you get an FHA loan with no money down?
Down payment assistance covers some or all of your FHA down payment. The FHA DPA program provides 2.5%, 3.5%, or 5% of the purchase price as a repayable 10-year second lien for borrowers with a 580+ FICO, and state programs like Colorado CHFA (up to $25,000) and Florida SHIP county funds add forgivable and grant options on top.
What this means for your mortgage
With the FHA DPA second lien covering your 3.5% and the seller covering closing costs, your out-of-pocket cash can be close to zero.
Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 23, 2026 against HUD Handbook 4000.1
Run the DPA numbersTL;DR
Down payment assistance: key takeaways
- FHA DPA: 2.5%, 3.5%, or 5% of the price, 10-year repayable second lien
- 580 minimum FICO for the FHA DPA second lien
- Colorado CHFA offers up to $25,000 in assistance with a 620 FICO floor
- Florida SHIP and county programs offer forgivable seconds, often 0% interest
- Some programs forgive after 36 or 60 months of occupancy
- DPA stacks with seller concessions of up to 6% for closing costs
How the Simply Approved Mortgages DPA works
The Simply Approved Mortgages DPA is a repayable 10-year fixed second mortgage — not a grant. It funds at closing in one of three tiers: 2.5%, 3.5%, or 5% of the lesser of the contract price or appraised value, layered on top of a 30-year fixed FHA first mortgage.
- Use of funds: down payment, closing costs, or prepaid taxes/insurance.
- Second-lien rate: first-mortgage rate plus 2%, fixed for the 10-year term.
- Credit: minimum 580 FICO; non-traditional credit may be considered.
- Occupancy: primary residence only (1-unit, PUD, 2–4 unit, FHA-approved condo, or manufactured home).
- Education: approved homebuyer education required within 6 months of closing.
- No income cap, no first-time buyer requirement.
Not available in NY, WA, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa. The second lien generally may not be resubordinated for 3–10 years depending on assistance amount. Program subject to investor and FHA underwriting guidelines. Final eligibility and terms are determined only after a full application and underwriting review.
Estimate your DPA & check eligibility
Slide in your purchase price and answer a few questions. The calculator shows your estimated assistance amount and the 10-year second-lien payment; the eligibility checker flags any program rules that may not fit you.
Simply Approved Mortgages DPA
DPA amount calculator & eligibility checker
Estimate 3.5% assistance on the lesser of price or appraisal, layered over a 30-year fixed FHA first mortgage.
Estimated DPA
$14,000
3.5% of $400,000
2nd-lien P&I
$174
10-yr · 8.500%
Amount calculator
- Lesser of price or appraisal
- $400,000
- DPA at 3.5%
- $14,000
- 2nd-lien term
- 10-year fixed, repayable
- 2nd-lien rate
- 8.500%
- Monthly P&I
- $174/mo
Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear only on your Loan Estimate and Closing Disclosure.
Eligibility checker
Documentable qualifying income?
Willing to complete homebuyer education before closing?
Property in NY, WA, USVI, Guam, MP, or AS?
Answer each question above to see your preliminary result.
Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.
Preliminary self-check only — no credit pulled. Not a quote, lock, offer, or commitment to lend. Simply Approved Mortgages is not affiliated with HUD, FHA, VA, USDA, FHFA, or any government agency. Equal Housing Opportunity. NMLS# 2620881.
Four ways down payment assistance can be structured
Assistance is not one product. It can be a second mortgage you repay, a silent second that gets forgiven, or a straight grant you never pay back. The right structure depends on your credit score, your income, and how long you plan to stay in the home.
Repayable second — 10-year term
A second mortgage that funds your down payment and closing costs, repaid alongside your first mortgage over 10 years.
- Assistance
- 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- Min. FICO
- 580
- Income cap
- None
- First-time buyer
- Not required
Repayment
Monthly payments for 10 years at your first-mortgage rate plus 2%.
- Lowest credit floor of any structure we offer — 580 FICO, and non-traditional credit is allowed for borrowers with no FICO score.
- No income cap and no first-time buyer requirement.
- First lien is a 30-year fixed FHA loan; the assistance second is a 10-year fixed.
- Available on FHA 203(b) purchases and both 203(k) limited and 203(k) standard rehabilitation loans.
- Eligible on 1-unit homes, PUDs, 2–4 units, FHA-approved condos, and single- or double-wide manufactured homes.
- Standard and high-balance loan limits both available.
- Purchase transactions and primary residences only.
Best for: Buyers with credit in the 580–639 range, or anyone whose income is too high for a capped program.
Repayable second — 15-year term
The same idea stretched over 15 years, which lowers the monthly cost of the assistance and allows a temporary rate buydown.
- Assistance
- 3.5% (standard or high balance) or 5% (standard limits, FHA only)
- Min. FICO
- 640
- Income cap
- None
- First-time buyer
- Not required
Repayment
Monthly payments for 15 years at your first-mortgage rate plus 2%.
- Longer second-lien term means a smaller monthly payment than the 10-year structure for the same assistance amount.
- 2/1 and 1/0 temporary buydowns are available, and the second lien can be bought down to match the first.
- Homebuyer education is required for at least one occupying borrower.
- 1–2 unit properties on FHA; non-occupant co-borrowers allowed.
- No minimum LTV and no maximum CLTV.
- Debt-to-income is set by the automated underwriting decision; manual underwriting is allowed.
Best for: Buyers at 640+ who want the lowest possible monthly cost on the assistance itself.
Forgivable second — 0%, no payment
A silent second mortgage with no interest and no monthly payment, forgiven entirely once you have made your first-mortgage payments on time.
- Assistance
- 3.5% of the lesser of purchase price or appraised value
- Min. FICO
- 640
- Income cap
- Qualifying income at or below 160% of the area or state median income
- First-time buyer
- Not required
Repayment
No monthly payment and 0% interest. Forgiven at your request after 36 or 60 consecutive on-time first-mortgage payments, depending on the program.
- Structured as a 30-year second lien at 0% with no scheduled payment, so it does not raise your monthly housing cost at all.
- Forgiveness is not automatic — you request it after the required run of consecutive on-time payments.
- The second lien generally cannot be subordinated during the first 36 months, so an early refinance means paying it off.
- Income must be at or below 160% of the median for the state, county, or MSA where the property sits.
- If you sell or refinance before the forgiveness milestone, the balance is repaid at closing.
Best for: Buyers who plan to stay put for at least 3–5 years and want assistance that costs nothing monthly.
Grant — never repaid
A true grant toward down payment and closing costs. There is no second lien and no repayment.
- Assistance
- 2% or 3.5% on FHA
- Min. FICO
- 640
- Income cap
- At or below 160% of the state or county median income, regardless of family size
- First-time buyer
- Not required
Repayment
None. There is no lien and nothing to pay back, unless the loan is paid off within the first six months of payments.
- No second lien is recorded at all, which keeps your CLTV and your monthly payment down.
- Broad exceptions to the income cap — only one borrower has to meet any one of them: first-time homebuyer; active or retired first responder, educator, medical personnel, military, or federal/state/local civil servant; or a property in an underserved census tract.
- 25-year and 30-year fixed FHA terms available.
- Homebuyer education is required, and non-occupant co-borrowers are allowed.
- Conforming loan limits only.
- Not available in Washington state.
- Manual underwriting is allowed on FHA, with payment-shock limits that tighten below a 680 score.
Best for: Income-eligible buyers at 640+ — this is the cheapest assistance available, because it is free.
Homebuyer education is required on every structure above. Assistance is not offered in New York, Washington, U.S. Virgin Islands, Guam, Northern Mariana Islands, American Samoa. Simply Approved Mortgages is licensed in Colorado and Florida, and neither state is excluded. Program terms are set by the investor and change without notice.
Federal Home Loan Bank Homeownership Set-Aside: grant or second mortgage?
This is the question borrowers ask most about assistance funded through a bank rather than a housing agency. HUD Handbook 4000.1 Update 18 answered it directly on August 12, 2026.
Federal Home Loan Bank Homeownership Set-Aside funds are down payment and closing-cost assistance awarded through FHLB member banks. Update 18 confirms FHA allows the money to be structured either as a grant with no repayment or as secondary financing recorded as a second lien — the structure is set by the FHLB district and the member institution, not by FHA.
| Program | Structure | Repayment | Lien position | Income limits | Participating lender | Geography |
|---|---|---|---|---|---|---|
| FHLB Set-Aside — grant structure | Grant | No repayment; typically subject to a retention/recapture period if you sell or refinance early | No lien, or a retention agreement only | Household income at or below 80% of area median income (FHLB program rule) | Must be originated through an FHLB member institution enrolled in that district's program | Varies by FHLB district; funds are released in annual rounds and run out |
| FHLB Set-Aside — secondary financing structure | Secondary financing (second mortgage) | Per the district's note — commonly forgiven over a 5-year retention period, otherwise repaid on sale or refinance | Recorded second lien behind the FHA first mortgage; counts toward CLTV | Household income at or below 80% of area median income (FHLB program rule) | Must be originated through an enrolled FHLB member institution | Varies by FHLB district and member; typically first-come, first-served each funding round |
Informational only. Simply Approved Mortgages does not currently offer or represent a Federal Home Loan Bank Homeownership Set-Aside product; availability depends on member-institution access and licensing. Ask us and we will tell you plainly whether it is available on your file.
Verified against HUD Handbook 4000.1 Update 18 — August 12, 2026
Reviewed by the Simply Approved Mortgages underwriting desk — Licensed mortgage originators (NMLS) — Colorado & Florida. The grant vs. secondary-financing distinction above reflects the Update 18 clarification for FHA secondary financing sources.
State and local down payment assistance in Colorado & Florida
Beyond the programs above, both states we lend in have their own public assistance. These are run by housing finance agencies, counties, and cities — apply directly with the agency, and we will underwrite the FHA first mortgage around it.
Colorado
Grant — no repayment
CHFA Down Payment Assistance Grant
Colorado Housing and Finance Authority
- • Non-repayable grant of up to the lesser of $25,000 or 3% of the total first-mortgage loan amount.
- • Minimum 620 credit score; borrowers with no credit score may be considered with manual underwriting.
- • Maximum DTI of 50% for FICO 620–659, or 55% for FICO 660 and above.
- • 96.5% LTV on an FHA first mortgage, including FHA 203(k).
- • Household income must fall under CHFA's published limits for your county.
- • The grant and the CHFA second mortgage cannot be combined — you choose one.
Second mortgage
CHFA Second Mortgage Loan
Colorado Housing and Finance Authority
- • Up to the lesser of $25,000 or 4% of the total first-mortgage loan amount — more assistance than the grant option.
- • Due in full at the earlier of 30 years, or when you sell, refinance, or pay off the first mortgage.
- • Cannot be used to fund FHA's minimum required investment on its own.
- • Same 620 credit floor and 50%/55% DTI tiers as the grant.
- • CHFA will subordinate the second mortgage only once over the life of the loan.
- • Purchase transactions may be subject to federal recapture tax.
Non-forgivable loan
Colorado Housing Assistance Corporation (CHAC)
CHAC, Inc.
- • Statewide nonprofit down payment and closing-cost assistance, repaid as a second loan.
- • Can be layered with an FHA first mortgage subject to program and investor approval.
Florida
Florida assistance comes from two places: statewide Florida Housing Finance Corporation second mortgages that pair with an eligible Florida Housing first mortgage, and county or city programs largely funded through the State Housing Initiatives Partnership (SHIP). Availability depends on where you are buying, program income and purchase-price limits, and annual funding cycles. Terms below reflect Florida Housing’s published 2026 program terms and are set by the agency, not by us.
Deferred second mortgage — repayable, not forgivable
Florida Assist (FL Assist)
Florida Housing Finance Corporation
- Up to $10,000 in down payment and closing-cost assistance for eligible buyers using a Florida Housing first mortgage.
- Structured as a 0% deferred second mortgage with no monthly payment; the balance becomes due on sale, refinance, transfer, or when the home stops being your primary residence.
- Must be paired with an eligible Florida Housing first mortgage and originated through a participating lender.
Amortizing second mortgage — monthly payment required
Florida Homeownership Loan Program (FL HLP) Second Mortgage
Florida Housing Finance Corporation
- $12,500 in down payment and closing-cost assistance.
- 3% interest, fully amortizing over a 30-year term, so it carries a monthly payment that is counted in your debt-to-income ratio.
- The remaining balance is due on sale, refinance, transfer, or when the home is no longer your primary residence.
Deferred second mortgage — repayable, not forgivable
Florida Hometown Heroes Housing Program
Florida Housing Finance Corporation
- For 2026, assistance equals 5% of the first mortgage loan amount, with a $10,000 minimum and a $35,000 maximum.
- 0% interest, non-amortizing, deferred 30-year second mortgage — no monthly payment, and the assistance is NOT forgiven.
- Repaid in full when you sell, refinance, transfer the deed, satisfy the first mortgage, or stop occupying the home as your primary residence.
- Open to eligible full-time Florida workforce buyers who meet program income and purchase-price limits set by Florida Housing.
Forgivable loan
SHIP — Hernando County
Hernando County
- State Housing Initiatives Partnership funds administered locally for down payment and closing costs.
Forgivable after 30 years
Pinellas County Down Payment Assistance Program
Pinellas County
- Assistance is forgiven over a 30-year affordability period as long as the home remains your residence.
Non-forgivable loan
Homebuyer Assistance Program — Pasco County
Pasco County
- Repayable second-lien assistance for income-eligible Pasco County buyers.
Forgivable — 5 years (Polk County) or 10 years (City of Lakeland)
City of Lakeland / Polk County GAP down payment assistance
City of Lakeland Housing Division and Polk County (formerly administered by HANDS of Central Florida)
- Gap financing whose forgiveness period depends on the jurisdiction funding the assistance.
- HANDS of Central Florida no longer administers these programs; applications now go through the City of Lakeland Housing Division or Polk County directly.
Forgivable after 10 years
City of St. Petersburg Down Payment Assistance
City of St. Petersburg
- Municipal assistance forgiven over a 10-year residency period.
Non-forgivable loan
SHIP — Alachua County
Alachua County
- Repayable SHIP-funded down payment assistance for income-eligible households.
Non-forgivable loan
Miami-Dade County Homebuyer Downpayment Assistance
Miami-Dade County
- County-administered second-lien assistance for qualifying Miami-Dade buyers.
Non-forgivable loan
Affordable Home Ownership Assistance Program (AHOAP)
Florida local jurisdiction
- Locally administered repayable assistance toward down payment and closing costs.
DPA frequently asked questions
What is the Simply Approved Mortgages DPA program?
It is a repayable 10-year fixed second mortgage that covers 2.5%, 3.5%, or 5% of the lesser of the purchase price or appraised value. The funds can be used for your down payment, closing costs, or prepaid escrow items on an FHA first mortgage.
Is the DPA a grant?
Our flagship 2.5%/3.5%/5% program is a repayable second lien, not a grant — it is fixed for 10 years at a rate 2% higher than the first mortgage and is paid back as part of your monthly housing payment. We also offer a true grant of 2% or 3.5% that is never repaid, and a forgivable second at 0% with no monthly payment. The grant and forgivable options require a 640 score and income at or below 160% of area median, with wide exceptions.
What is the difference between a repayable second, a forgivable second, and a grant?
A repayable second is a real second mortgage with a monthly payment over 10 or 15 years. A forgivable second is recorded as a lien at 0% with no monthly payment, and is wiped out at your request after 36 or 60 consecutive on-time first-mortgage payments. A grant has no lien and nothing to repay at all, unless you pay the loan off within the first six months. Grants are the cheapest, but they carry income limits and a 640 credit floor.
What down payment assistance is available in Colorado?
The Colorado Housing and Finance Authority offers a non-repayable grant of up to the lesser of $25,000 or 3% of your first-mortgage amount, or a second mortgage of up to the lesser of $25,000 or 4%. You choose one — they cannot be combined. Both require a 620 minimum score and allow DTI up to 50% for scores of 620–659 or 55% for 660 and above, at 96.5% LTV on an FHA loan. Colorado Housing Assistance Corporation (CHAC) also offers statewide repayable assistance.
What down payment assistance is available in Florida?
Florida assistance is administered locally, mostly through State Housing Initiatives Partnership (SHIP) funds. Programs include Pinellas County (forgivable over 30 years), the City of St. Petersburg and HANDS of Central Florida (forgivable over 10 years), and repayable programs in Miami-Dade, Pasco, and Alachua counties. Availability depends on your county and on annual funding cycles.
What are the basic requirements?
Minimum 580 FICO (non-traditional credit may be considered case-by-case), primary residence only, FHA-eligible property type, documentable qualifying income, and completion of an approved homebuyer education course within six months of closing.
Are there income limits or first-time buyer requirements?
No. There is no income cap and no first-time homebuyer requirement, which makes this DPA broader than most state or local programs.
Are Federal Home Loan Bank Set-Aside funds a grant or a second mortgage?
Either one. HUD Handbook 4000.1 Update 18, published August 12, 2026, clarified that Federal Home Loan Bank Homeownership Set-Aside funds may be structured as a grant with no repayment or as secondary financing recorded as a second lien. The FHLB district and the member bank decide which structure applies, and household income generally must be at or below 80% of area median. Simply Approved Mortgages does not currently offer an FHLB Set-Aside product.
Where is the program available?
Most of the U.S. It is not currently available in NY, WA, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, or American Samoa.
Can I refinance or sell while the second lien is outstanding?
Yes, with conditions. The second lien is generally not resubordinated for the first 3–10 years depending on assistance amount. When you sell or refinance, the remaining balance is paid off at closing.
Price a real FHA scenario
See live wholesale FHA pricing for your exact scenario — Florida and Colorado primary residences. Provider pricing only, never an estimate. Not a lock, approval or commitment to lend.
Open the FHA pricing toolReady to stack DPA with your FHA loan?
See how a DPA tier appears on your Loan Estimate. Eligibility and approval are determined by the lender and program administrator.