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What Can I Borrow for VA, FHA, and USDA Loans?

The FHA has established maximum loan amounts that they are able to insure. These loan limits are calculated and updated annually, and are influenced by the conventional loan limits set by Fannie Mae and Freddie Mac. The type of home being built, such as single-family or duplex, can also affect these numbers. VA and USDA loans address limits differently.

What Can I Borrow for VA, FHA, and USDA Loans?

Starting in 2020, loan limits no longer apply to new VA Loans. The Department of Veterans Affairs (commonly referred to as the VA) can now back larger loans than previous allowed. This change doesn’t mean that you have unlimited borrowing power. Home Funding Corporation will still have credit requirements that you need to meet as well as maximum loan amounts. The bottom line is that it should be easier for veterans to get zero down payment loans nationwide, regardless of home prices.

More information is available at the VA website.

Build Your Home With a USDA Loan

Income limits for all states are based on maximum income for the household. For 2022, except for designated high cost areas, counties in each state have a maximum income threshold of $91,900 for households of 1-4 people. In counties where a higher limit is available for households of 5-8 people, that income limit is $121,300.

If you feel you are near or above the posted income limits for USDA, it’s best to speak with a HFC loan officer, as they will know how to calculate your income using USDA guidelines.

Lending Limits for FHA Loans

The FHA has a maximum loan amount that it will insure, which is known as the FHA lending limit. These loan limits are calculated and updated annually, and are influenced by the conventional loan limits set by Fannie Mae and Freddie Mac. The type of home, such as single-family or duplex, can also affect these numbers. For 2020, the FHA floor was set at $420,680 for single-family home loans. This lending limit covers most U.S. counties.

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