FHA Loans on Long Island and in New York City

An FHA loan is a home mortgage made by a private lender and insured by the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD). I help buyers get FHA loans on Long Island and across downstate New York, comparing FHA offers from the lenders I work with.

FHA has lower minimum credit score requirements than most conventional mortgages and accepts gifts and approved down payment assistance as sources of funds; in return, borrowers pay upfront and annual mortgage insurance premiums. For 2026, the FHA limit for a one-family home in Nassau, Suffolk and the five boroughs of New York City is $1,249,125.

Who an FHA loan tends to fit

FHA is a familiar option for first-time buyers on Long Island. It tends to fit when one or more of these describes you:

• Your credit is still being built or repaired. HUD notes that FHA has lower minimum credit score requirements than most conventional mortgages, though approval still depends on the whole file.
• Your savings are still catching up to Long Island prices. HUD accepts your own funds, gifts, second mortgages and grants through down payment assistance programs toward FHA’s required investment.
• You want a two- to four-family home or a home with an accessory unit. HUD lists 2–4 unit properties as eligible, and FHA allows buying a property with an accessory dwelling unit (ADU).
• You work out of a union hall. HUD doesn’t require the extra job-change check for union trades, and FHA allows a gift from your employer or your union. See how lenders count union pay.

If your credit is strong and you have more saved, a conventional loan may cost less over time, and anyone with military service should also compare VA loans on Long Island.

How does an FHA loan work?

FHA does not lend money. A lender makes the loan and FHA insures it, and the borrower pays for that insurance in two parts:

• Upfront Mortgage Insurance Premium (UFMIP). A premium charged at the start of the loan.
• Annual Mortgage Insurance Premium (MIP). An ongoing premium whose level and duration follow HUD’s rules for your loan.

HUD sets these premiums and changes them by mortgagee letter. Your exact figures appear on your Loan Estimate, and I can show you how they compare with private mortgage insurance on a conventional loan.

FHA also insures a reverse mortgage, the Home Equity Conversion Mortgage (HECM), for homeowners 62 and older. It follows different rules; see my Long Island reverse mortgage (HECM) guide.

This page is not from HUD or FHA and was not approved by HUD or any government agency.

What are the 2026 FHA loan limits in Suffolk, Nassau and New York City?

In 2026, the FHA loan limit for a one-family home is $1,249,125 in Suffolk, Nassau and the five boroughs of New York City, per HUD. HUD sets the limits by metro area and county from median house prices, using the highest-priced county in high-cost metro areas. Nassau and Suffolk are both in the New York City metro area. For case numbers assigned on or after January 1, 2026, both counties sit at FHA’s high-cost ceiling: 150% of the $832,750 national conforming limit.

The limit caps the loan amount, not the price of the home, and for a one-family home the FHA limit here is higher than the conforming limit for Fannie Mae and Freddie Mac loans. The same FHA limits apply in all five boroughs and in Westchester, Rockland and Putnam. Outside the New York City metro area they’re lower; my New York FHA loan limits by county page lists all 62.

For context, OneKey MLS reported August 2026 median single-family sales prices of $911,000 in Nassau and $760,000 in Suffolk, both well under the FHA one-unit limit (more on my page of Nassau and Suffolk home prices by month). The real question is usually whether the monthly cost and cash to close work for you; test that with the Long Island mortgage calculator.

FHA loans in Suffolk, Nassau, New York City and Westchester

FHA mortgages in Suffolk County

Suffolk’s 2026 FHA limit for a one-family home is $1,249,125, the same as Nassau’s. In Suffolk, the ten town assessors, not the county, set the assessments behind your tax bill, so whether you’re buying in Smithtown, Brookhaven or Babylon, I work from the actual bill on the house. High-risk flood zones run along the South Shore and the East End, and flood insurance is required there with an FHA loan. My Suffolk County home financing guide covers town grievances and the rental rules in Southampton and East Hampton.

FHA loans in Nassau County

In Nassau, the county’s Department of Assessment sets the assessment behind most of your property tax, and special districts add to the bill, so I work from the actual tax bill there too. Some South Shore homes are in high-risk flood zones with the same insurance requirement. My Nassau County home financing guide covers assessment grievances and STAR.

FHA loans in Staten Island, Queens, Brooklyn, Manhattan and the Bronx

The rules and limits are the same in all five boroughs, which HUD’s lookup lists by county: New York (Manhattan), Kings (Brooklyn), Queens, Bronx and Richmond (Staten Island). The housing is different. Two- and three-family houses are common on Staten Island and in Queens, Brooklyn and the Bronx, and FHA covers up to four units if you live in one; the lender may count rent from the others, within FHA’s rules. A condo needs to be on HUD’s approved list or get single-unit approval, so check the building early. A standard FHA loan doesn’t cover co-ops, which are common in Manhattan; my co-op guide explains what to use instead.

FHA loans in Westchester, Rockland and Putnam

Westchester, Rockland and Putnam use the same FHA limits, and two- to four-family houses in Yonkers or Mount Vernon work the same way as in the boroughs. Co-ops, common in lower Westchester, need a different loan, since a standard FHA loan won’t cover them. I’m licensed throughout New York State.

The FHA appraisal and property standards

Every FHA property, including condos, townhomes, 2–4 unit buildings and modular or manufactured homes, has to meet FHA’s property requirements, and the appraisal usually checks them alongside value. A condition that falls short may need to be addressed before closing, so a house sold as-is deserves a conversation before you offer. The home inspection is separate: it is for you, while the appraisal is for the loan.

Condos: check HUD’s approval list first

HUD keeps a searchable list of FHA-approved condominium projects by location, name or status. If a building is not on it, HUD allows single-unit approval in some cases; among other conditions, the project must be complete, ready for occupancy and have at least five dwelling units. Look it up before you fall for a unit.

Homes with an accessory unit

HUD says FHA allows buying a property with an ADU and that the ADU’s rental income can be included, but local rules decide how a unit may be used. A Town of Hempstead “Mother-Daughter Use” approval, for example, covers a second kitchen for the sole use of the owner’s children or parents. It is not a rental permit, so don’t count on rent from that space.

Pairing FHA with down payment assistance

Because HUD accepts gifts, second mortgages and assistance grants as sources of funds, FHA can be paired with assistance when the program’s own rules allow it.

I offer private down payment assistance programs available through lenders I work with. They are not New York State, county or town programs and are not affiliated with or endorsed by any government agency. Whether one can be paired with an FHA loan depends on the program and the lender, so I check that before you make an offer. Terms, eligibility and availability vary by program and lender, are subject to credit, income, property and underwriting guidelines, and can change or end without notice; not everyone will qualify. See how down payment assistance works and who may qualify.

FHA vs. conventional, in plain words

Neither one is cheaper by default. The answer turns on your credit, how much cash you bring and how long you expect to keep the loan, which is why I price both side by side before you choose.

Long Island costs and taxes to plan for

Some costs here come from New York law, not the loan program. Your closing attorney confirms the exact figures, but these tend to surprise buyers:

• Closing taxes. New York charges a mortgage recording tax when the mortgage is recorded, and some buyers also owe other state or local taxes at closing. Your Loan Estimate shows the estimated amounts.
• STAR. New homeowners can’t get the STAR exemption; they register for the STAR credit instead, which has a $500,000 income limit for Basic STAR.

For tax or legal questions about your situation, talk with your attorney or a tax professional.

Step by step: an FHA purchase on Long Island

1. Start with a conversation. We review income, credit, savings and any gift or assistance, and compare FHA with conventional and, if you served, VA.
2. Gather documents and get pre-approved. Use my mortgage document checklist so the file is complete from day one, and check the gift funds box if family is helping with the down payment. The credit check for pre-approval is only a soft one, so it won’t affect your credit score.
3. Shop inside the numbers. Keep the loan amount within the 2026 FHA limit and check any condo against HUD’s list before you offer.
4. Sign the contract with your attorney. Send me any as-is or repair language early.
5. Appraisal and underwriting. Answer conditions quickly, and avoid new credit or undocumented deposits.
6. Clear to close. Your attorney confirms recording tax and closing figures, and you sign.

I’m a mortgage loan originator with Scott Capital Group. I don’t make loans; I arrange them with third-party lenders. I work with buyers on Long Island, in New York City and in Westchester, Rockland and Putnam.

Already have an FHA loan?

FHA has a Streamline Refinance program for refinancing existing FHA-insured mortgages. Whether it is worth doing depends on your current loan and what the new one would cost; my guide to refinancing a mortgage on Long Island walks through the options.

Frequently asked questions

Sources

1. HUD, FHA Mortgage Limits lookup (FHA Forward, CY2026, Nassau, Suffolk, the five boroughs, Westchester, Rockland and Putnam, NY).
2. HUD, Mortgagee Letter 2025-23, 2026 Nationwide Forward Mortgage Loan Limits.
3. FHFA, FHFA Announces Conforming Loan Limit Values for 2026.
4. FHFA, 2026 conforming loan limits, full county list (spreadsheet).
5. HUD, Mortgagee Letter 2023-05, Reduction of FHA Annual MIP Rates.
6. HUD, Single Family Housing Policy Handbook 4000.1 (credit score limits on financing); Mortgagee Letter 2026-11 (Oct. 8, 2026; effective January 1, 2027) keeps those minimums unchanged.
7. HUD, FHA Myths v Facts.
8. HUD, FHA Condominiums.
9. OneKey MLS, Footprint Round-Up, September 22, 2026 (August 2026 data).
10. NYS Department of Taxation and Finance, STAR eligibility.
11. Town of Hempstead, Mother-Daughter Use.