Mortgage loan limits are the maximum amount of money that a borrower can borrow to purchase a home through a mortgage loan, as determined by the government-sponsored entities Fannie Mae and Freddie Mac, or the Federal Housing Administration (FHA). These loan limits vary depending on the location of the property and the type of mortgage loan.

For conventional mortgages that are not backed by a government agency, such as Fannie Mae or Freddie Mac, the loan limits are determined by the Federal Housing Finance Agency (FHFA). The FHFA sets loan limits based on the median home prices in a particular area. In 2022, the FHFA has set a maximum loan limit of $726,200 for most areas in the United States. However, in high-cost areas, such as San Francisco, the loan limit is higher, up to $1,089,300.

For FHA loans, the loan limits are determined by the Department of Housing and Urban Development (HUD). The loan limits are based on the median home prices in a particular area and are adjusted annually. In 2022, the FHA loan limits range from $472,030 to $1,089,300 depending on the location of the property.

It is important to note that these loan limits only apply to the amount of the mortgage loan, and not the total purchase price of the home. Borrowers are still required to make a down payment on the home purchase to cover the difference between the loan amount and the purchase price.

• Conforming loan limits are currently capped at $726,200
• Hi Balance loans currently have a maximum loan amount of the county limit, if the home is located in a high balance region
• Jumbo loans begin after the conforming limit and the jumbo loan limit is $20 million
• The conforming VA loan limit is $726,200 and the VA jumbo loan limit is $20 million
• The FHA loan limit is based upon the county in which the home being financed resides
• The USDA loan limit is based upon the county in which the home being financed resides