Big News for 2026: FHA Increases Loan Limits to Help You Buy in Utah County

by Lori Collins

Big News for 2026: FHA Increases Loan Limits to Help You Buy in Utah County

If you’ve been watching the real estate market in Utah County, you know that home prices have continued to climb. For many buyers—especially first-time homeowners and those looking for more flexible financing—the Federal Housing Administration (FHA) loan is a vital tool.

I’m excited to share some fantastic news that just came from the U.S. Department of Housing and Urban Development (HUD): FHA loan limits are officially increasing for 2026. This update is designed to keep pace with rising property values and ensure that the dream of homeownership remains within reach. Whether you are looking for a starter home in Provo, a family retreat in Mapleton, or a multi-unit investment in Spanish Fork, these changes could significantly boost your buying power.

What Are the New 2026 FHA Loan Limits for Utah County?

The FHA is required by law to adjust its loan limits annually based on changes in median home prices. Because Utah County has seen such high-growth, our local limits have been adjusted upward to reflect the current market.

While the national "floor" for standard areas is rising to $541,287, Utah County is once again classified as a high-cost area. This means our local limits are significantly higher, providing a major advantage to buyers in Springville and surrounding cities.

2025 vs. 2026 FHA Loan Limit Comparison: Utah County

Property Type	2025 Limit	2026 New Limit	Total Increase
1-Unit (Single Family)	$601,450	$621,000	+$19,550
2-Units (Duplex)	$769,950	$795,000	+$25,050
3-Units (Triplex)	$930,700	$960,950	+$30,250
4-Units (Fourplex)	$1,156,650	$1,194,250	+$37,600

How These Increases Benefit Local Buyers

You might be wondering, "Why does a loan limit matter if I’m not planning to buy a million-dollar home?" The answer lies in accessibility and flexibility. Here are three major ways these increases benefit you here in the valley:

1. Lower Down Payments for Mapleton and Provo Homes

The hallmark of an FHA loan is the low down payment requirement—just 3.5% for those with a credit score of 580 or higher. Previously, if the home you wanted in a neighborhood like Mapleton was priced above the FHA limit, you might have had to switch to a "Jumbo" loan, which often requires a 10% to 20% down payment. With the 2026 limit now over $1 million for Utah County, you can purchase a high-end home while still putting only 3.5% down. This keeps more cash in your pocket for renovations or emergency funds.

2. Staying Competitive in Springville and Spanish Fork

In high-demand areas like Springville and Spanish Fork, speed and certainty matter. By raising the limits, HUD ensures that more homes in our "median" range remain eligible for FHA financing. This means you don't have to worry as much about a home's price creeping just outside of your loan's reach during a bidding war. It gives you the confidence to make a strong offer knowing your financing is secure.

3. New Opportunities for "House Hacking"

Are you interested in buying a duplex or a fourplex and living in one unit while renting out the others? FHA loans are one of the best ways to do this. For 2026, the limits for four-unit properties in Utah County have soared past $2 million. This allows you to use FHA financing to purchase a significant income-producing asset with a very small down payment compared to traditional investment loans.

Is an FHA Loan Right for You in 2026?

Beyond the increased limits, FHA loans remain a popular choice for several reasons:

Flexible Credit Standards: FHA loans are often more accessible for those who have a few bumps in their credit history or a higher debt-to-income ratio.
Seller Contributions: FHA allows sellers to contribute up to 6% of the purchase price toward your closing costs, which can save you thousands of dollars at the signing table.
Assumability: If you sell your home later, a buyer might be able to "assume" your interest rate—a massive selling point if rates rise in the future.

Let’s Find Your 2026 Dream Home

These new limits go into effect for FHA case numbers assigned on or after January 1, 2026. If you’ve been sitting on the sidelines because you felt priced out of the market, it’s time to take a fresh look at your options.

As your local real estate expert at loricollins.com, I am here to help you navigate these changes. I’m just a phone call away.

Ready to see what your new buying power looks like? Contact me today, and let’s make 2026 the year you move into your new Utah home!