Each year, the Federal Housing Finance Agency releases new loan limits for conforming loans that they base on the third quarter House Price Index report. New limits are out and theyve gone up. VA loans use the same limits in the rare instances when one is required. FHA limits use a different formula based on the conforming loan limits.
Getting the biggest mortgage possible can seem tempting especially for homebuyers looking to purchase their dream home. However, taking on too much debt can put you in a precarious financial position. That’s why it’s important to understand your options and the factors that determine the maximum mortgage you can qualify for.
In this comprehensive guide we’ll break down everything you need to know about getting the largest possible mortgage. including
- Conventional loan limits
- Jumbo loans
- Government-backed loans (FHA, VA, USDA)
- Loan-to-value ratios
- Debt-to-income ratios
- Credit scores
- Down payments
- Income requirements
Conventional Loan Limits
For conventional mortgages backed by Fannie Mae and Freddie Mac, the standard conforming loan limit in 2023 is $726,200 for single-family homes in most parts of the U.S. However, limits can go higher in certain high-cost areas like San Francisco and New York.
These government-sponsored enterprises (GSEs) purchase conforming loans from lenders. So as long as your loan is at or under the conforming limit you can likely get better rates and terms.
Limits are higher for 2-4 unit properties:
- 2 units: $931,600
- 3 units: $1,124,475
- 4 units: $1,397,400
Jumbo Loans
If you need to borrow above the conforming limits in your county, you’ll be looking at a jumbo loan. These mortgages aren’t purchased by the GSEs so they come with stricter requirements:
- Minimum 10-20% down payment
- Credit score of at least 700
- Lower debt-to-income ratio (43% max)
Jumbo loans generally have higher interest rates as well since they are seen as riskier by lenders. The maximum you can borrow is typically $3-5 million.
Government-Backed Loans
FHA, VA, and USDA loans insure your mortgage, allowing for lower down payments and credit scores. However, they come with loan limits too:
FHA
- 1 unit: $726,200 (ceiling for high-cost areas)
- 2 units: $930,300
- 3 units: $1,124,475
- 4 units: $1,397,400
VA
- Same as conforming limits unless you have impacted entitlement or lender deems loan risky
USDA
- Varies by county, typically between $300,000-$550,000
So government loans can allow larger mortgages than conventional in high-cost areas.
Loan-to-Value Ratio
Your loan-to-value (LTV) ratio compares your loan amount to the home’s appraised value. The higher the LTV, the riskier lenders see the loan.
Typical LTV limits:
- Conventional: 95-97%
- FHA: 96.5%
- VA: 100%
- USDA: 100%
If you put less than 20% down, you’ll also need to pay mortgage insurance. So minimizing your LTV can save on those costs.
Debt-to-Income Ratio
Lenders look at your debt-to-income (DTI) ratio to measure your budget’s capacity to take on a mortgage. They add up your monthly debts divided by gross monthly income.
The maximum DTI for conventional loans is typically 45%. Government loans allow higher ratios, but most lenders cap them around 50%. The lower your ratio, the more comfortable lenders are lending to you.
Credit Scores
Your credit score gives lenders an idea of how reliably you repay debts. Minimum scores vary by program:
- Conventional: 620
- FHA: 500
- VA: 620
- USDA: 640
But the highest rates and loan amounts require a score of 740 or higher. Improving your credit can help you qualify for a larger mortgage.
Down Payments
Down payments reduce the LTV, demonstrating you have skin in the game. Conventional loans need as little as 3% down but larger down payments of 20%+ unlock better rates/terms.
Government loans allow down payments under 5% but charge mortgage insurance premiums. Ideal down payments:
- Conventional: 10-20%
- FHA: 3.5%
- VA: 0%
- USDA: 0%
Saving for a down payment takes discipline but provides equity and mortgage affordability.
Income Requirements
Lenders verify your income to ensure you earn enough to afford the monthly payments. Two years of stable income in the same line of work is ideal. Higher incomes allow bigger loan amounts, all else being equal.
Co-borrowers can combine incomes to qualify for a larger mortgage together. Bonuses, commissions, and self-employment income can also help you qualify if properly documented.
The Bottom Line
While today’s low rates may tempt you to get the biggest mortgage possible, it’s critical to only borrow what you can comfortably afford based on your personal financial profile.
Aim for the “goldilocks zone” – not too much house, not too little. Shop multiple lenders and programs to find your optimal loan amount. Consider talking to a financial advisor to map out a home financing plan that aligns with your broader financial goals.
With some preparation and discipline, you can determine the maximum mortgage that sets you up for long-term home financing success. Just remember, bigger isn’t always better when it comes to your mortgage loan size. Proceed thoughtfully and you’ll be on the pathway to sustainable homeownership.
Understanding the loan limit changes
The loan limits youre eligible for depend on where you live, your timing in getting your loan and what type of mortgage youre applying for. Well go over three loan types today, starting with conventional loans.
2025 conventional loan limits
Baseline conventional loan limits (also known as conforming loan limits) for 2024 increased roughly 5.21% compared with 2024, rising $39,950 to $806,500 for one-unit properties in most areas. Limits in high-cost counties are set on a county-by-county basis. The upper limit in high-cost counties is $1,209,750.
Limits are also higher based on the number of units in the home you’re buying. Here’s a table with the full breakdown:
| Number of Units | Continental U.S. | Alaska and Hawaii |
|---|---|---|
| 1 | $806,500 | $1,209,750 |
| 2 | $1,032,650 | $1,548,975 |
| 3 | $1,248,150 | $1,872,225 |
| 4 | $1,551,250 | $2,326,875 |
Under normal circumstances, VA loans don’t have loan limits. In the event that you default on the loan, the VA insures the same percentage of the mortgage for lenders regardless of the loan amount.
However, there are a couple of instances where VA loan limits do come into play. Where that’s the case, the limits listed above apply.
You might have a loan limit if you have what’s called impacted entitlement. In this case, part of your veteran benefit from the VA is shown as used up. You may have this if you have a VA loan that hasn’t been fully paid back or if you had a foreclosure that you haven’t paid the VA back for, for example.
If lenders think that a loan is large enough that it presents a slightly higher risk, they may also have different qualification requirements. While there’s no specific loan amount at which these VA jumbo loans start, many lenders including Rocket Mortgage use anything above conforming loan limits in the area as a guide. At Rocket Mortgage, you can get a VA jumbo loan for up to $2.5 million if you qualify.
FHA loan limits are updated at the beginning of each calendar year and effective January 1. Below weve listed the minimum and maximum loan amounts on a national level for residential properties with up to 4 units.
Before looking at these, it’s important to note how the limits on FHA mortgages work. The absolute lowest your own loan limit can be is 65% of the national conforming loan limit, which for a 1-unit property in 2025 is $524,255. However, loan limits are set entirely at the county level, so in many areas it’s going to be higher. Alaska and Hawaii have their own higher loan limit ceiling because of the higher cost of construction. Still, limits in these states are set at the county level.
FHA loan limits for 2025 have been announced based on the new conforming limits.
| Number of units | Loan limit floor | Loan limit ceiling in high-cost areas | Alaska and Hawaii |
|---|---|---|---|
| 1 | $524,255 | $1,209,750 | $1,814,625 |
| 2 | $671,200 | $1,548,975 | $2,323,450 |
| 3 | $811,275 | $1,872,225 | $2,808,325 |
| 4 | $1,008,300 | $2,326,875 | $3,490,300 |
If you’re looking to find the limits in your area, the Department of Housing and Urban Development has a mortgage limits search engine. Although ostensibly for FHA mortgage limits, you can also see conforming limits by selecting “Fannie/Freddie” under limit type. To see the limits for this year, be sure to also select “CY2025” for the limit year.
What is the biggest mortgage you can get? largemortgageloans.com
FAQ
Can you get a 50 year mortgage?
Can I afford a 600k house on 100k salary?
To comfortably afford a $600k mortgage, you’ll likely need an annual income between $150,000 to $200,000, depending on your specific financial situation and the terms of your mortgage. Remember, just because you can qualify for a loan doesn’t mean you should stretch your budget to the maximum.
What salary do you need for a $500000 mortgage?
With a high down payment, low property taxes and cheaper insurance, the mortgage payments on a $500,000 home may be as low as $3,045. To adhere to the 28/36 rule, your gross monthly income would need to be $10,876, which is a little more than $130,000 annually.
Can you get a 30-year mortgage in the USA?
A 30-year fixed-rate mortgage is the most common mortgage loan option. It has a repayment period of 30 years and the interest rate doesn’t change throughout the life of the loan.
What is a maximum mortgage calculator?
This maximum mortgage calculator collects these important variables and determines the maximum monthly housing payment and the resulting mortgage amount. Bankrate.com provides FREE interest-only mortgage calculators and loan calculator tools to help consumers learn more about their mortgage payments.
How much mortgage can I qualify for?
The amount of mortgage you can qualify for depends on various factors, such as your income, credit score, debt-to-income ratio, and interest rates. You can use a mortgage calculator to get an estimate. Seeking advice from a mortgage professional can also help determine how much mortgage you could qualify for based on your circumstances.
How much does a mortgage cost?
Aside from the down payment, mortgages come with closing costs. These are fees you pay your lender to process your mortgage. Closing costs are generally 2% to 5% of your loan amount. According to ClosingCorp, in 2019, the average national closing cost for a single-family home was $5,749.
How much income do you need for a mortgage?
The general rule of thumb with mortgages is that you can borrow up to two and a half (2.5) times your annual gross income. Use our required income for a mortgage calculator to see how much annual income you need for a specific mortgage amount.
How much money can I take out on a home loan?
You may be able to take out as much as $30,000. Maximum cashout amount based on loan product, and the home value and mortgage balance information you supplied. Not guaranteed until locked in by your loan officer. How much are you looking to borrow? You may be able to take out as much as $200,000.
How much money should you spend on a mortgage?
A common budgeting strategy is the 28/36 rule. The rule says that you shouldn’t spend more than 28% of your total monthly income on your mortgage payment and that your debt obligations (including your monthly mortgage payment) shouldn’t exceed 36% of your total monthly income. What Kind of Mortgage is Right For Me?