For FHA loans, including the 203k, started on/after January 1, 2025, higher loan limits are permitted ... up to $3.49M in certain high cost areas!

Low-Cost Areas

The FHA national low-cost area mortgage limits, which are set at 65% of the national conforming limit of $806,500 for a one-unit Property, are as follows:
• One-unit: $524,225
• Two-unit: $671,200
• Three-unit: $811,275
• Four-unit: $1,008,300

High-Cost Areas

The FHA national high-cost area mortgage limits, which are set at 150% of the national conforming limit of $806,500 for a one-unit Property, are as follows:
• One-unit: $1,209,750
• Two-unit: $1,548,975
• Three-unit: $1,872,225
• Four-unit: $2,326,875

Special Exceptions for Alaska, Hawaii, Guam, and the Virgin Islands

Mortgage limits for the special exception areas of Alaska (AK), Hawaii (HI), Guam (GU), and the Virgin Islands (VI) are adjusted by FHA to account for higher costs of construction. These four special exception areas have a higher ceiling as follows:
• One-unit: $1,814,625
• Two-unit: $2,323,450
• Three-unit: $2,808,325
• Four-unit: $3,490,300

More details below in Mortgagee Letter 2024-21.