Loan Limits For Each Mortgage Program Explained

Today there are many choices when it comes to home mortgages.  Nearly all loan programs will have limits in place depending on many different variables. In this post, we will discuss the loan limits for each mortgage program and provide some insight into important things home buyers should know.

FHA Loan Limits:

FHA loan limits are set depending on the county/ location of the property.  The limits start at $472,030 for a single 1-unit property. However, these limits increase greatly in higher-cost locations, or for buyers purchasing multi-unit properties. Use the latest FHA loan limit link to look up the limits in your county.

VA Loan Limits:

As of 2020, VA no longer has loan limits for those buyers using their VA entitlement for the first time. This is all in part to the Blue Water Navy Vietnam Veterans Act of 2019, which became effective Jan. 1, 2020.  The new law eliminates VA loan limits for borrowers with full entitlement to VA loans. However, borrowers will still need to qualify and not exceed the debt-to-income ratio requirements.

USDA Loan Limits:

USDA loans are a popular first-time buyer program offering 100% financing to eligible borrowers in select rural locations. This government program is offered by Rural Development, through approved lenders.  USDA loans do not have loan limits. Instead, the program sets maximum debt to income ratios for qualifying. Since this program also has household income limits, the loan amounts for qualifying are generally below $400,000

Conventional Loan Limits:

Conventional, or “Conforming” loans are limited to $726,200 in most locations in the U.S. Just like FHA loans, there are some high-cost locations where the loan limits increase up to $1,089,300 for a single 1-unit property. Most of these more expensive locations are in California, Colorado, New York, New England, DC, etc.  See the complete Conforming loan limit list here.

Jumbo Loan Limits:

A Jumbo loan is defined as a loan that exceeds the conforming loan limit above. These loans are only limited by down payment amount and credit profile of the buyer. Example: Borrower purchasing a home with 5% down payment may be approved up to $2mil+ loan limits. However, borrowers that 10% down payment may be approved up to $3mil loan limits. Read more about Jumbo loan limits here.

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