What is the Maximum Conventional Loan Amount?

If you’re considering a conventional loan, you’re probably wondering how much you can borrow. Find out the maximum amount you can qualify for.

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Mortgage Basics

The maximum loan amount is the highest amount that a borrower is allowed to borrow under a conventional mortgage. A conventional mortgage is a loan that is not guaranteed or insured by the government. The maximum loan amount is not the same as the home’s purchase price. It is the Lesser of:

Define a conventional loan

A conventional loan is a type of mortgage that is not backed by a government agency. Instead, it is issued by a lender and guaranteed by private mortgage insurance (PMI) until 20% of the loan is paid, at which point PMI can be dropped.

Types of conventional loans

There are two main types of conventional loans: conforming and non-conforming. Conforming loans meet the guidelines set by government-sponsored organizations like Fannie Mae and Freddie Mac. Non-conforming loans do not meet these guidelines but may still be eligible for sale to private investors.

The maximum loan amount for a conforming loan is typically $424,100. Loans above this amount are known as jumbo loans and are not backed by government-sponsored organizations. Jumbo loans may still be eligible for sale to private investors, but they typically come with higher interest rates and stricter eligibility requirements.

Loan Limits

The Federal Housing Finance Agency (FHFA) sets the national conforming loan limit each year. The conforming loan limit for single-family homes was $453,100 in 2018, which is the same as it was in 2017. The loan limit for a two-unit home was $580,150, which is also the same as it was in 2017.

Find the maximum conventional loan amount

The maximum conventional loan amount varies by county. The highest limit is available in Hawaii, at $1,050,000. The lowest limit is in Kentucky, at $484,350.

In order to find the maximum loan amount in your county, you can visit the website of the Federal Housing Finance Agency (FHFA). On the website, you will find a link to the “Loan Limits” page. Once you are on the “Loan Limits” page, you will need to select your state from the drop-down menu and then select your county from the second drop-down menu. After you have made your selections, the maximum loan amount for your county will be displayed.

It is important to note that the FHFA updates their loan limits on an annual basis. Therefore, it is possible that the maximum loan amount in your county may change from one year to the next.

How the maximum loan amount is calculated

The maximum loan amount for a conventional loan is typically calculated by taking the greatest of the following:
– The national conforming loan limit set by Fannie Mae and Freddie Mac
– A statewide maximum loan limit set by Fannie Mae and Freddie Mac
– A jumbo loan limit set by the lender

The national conforming loan limit is the higher of the two limits. The statewide maximum loan limit is generally set at 115% of the median home price in the county where the property is located. The jumbo loan limit is set by each individual lender and can be higher or lower than the other two limits.

Factors That Affect the Maximum Loan Amount

The maximum loan amount for a conventional loan can vary depending on a number of factors. Some of these factors include the type of property you are buying, the location of the property, your credit score, and your down payment. In this article, we will discuss these factors in more detail.

The type of home

The type of home you are looking to purchase will also affect the maximum loan amount. A duplex, for example, will typically warrant a higher loan amount than a single-family dwelling. The reason for this is that lenders see these types of homes as generating more rental income, making them a sounder investment. The same logic applies to an investment property or a vacation home; these types of properties will also typically command a higher maximum loan amount than a standard primary residence.

The location of the home

The maximum loan amount for a conventional mortgage varies by county, as the size of the down payment also varies by county. In general, the maximum loan amount is capped at $484,350 across most of the U.S. However, there are exceptions for homes located in high-cost areas.

In these cases, the maximum loan amount can be as high as $726,525. The higher loan limits are generally available in counties where the median home price is significantly higher than the national average (think San Francisco and New York City). You can check the median home prices in your county here.

If you’re buying a home in a high-cost area with a conventional loan and you don’t make a down payment of at least 20 percent, you’ll need to pay for private mortgage insurance (PMI). PMI protects the lender if you default on your loan. The cost of PMI depends on several factors, including:

-The size of your down payment
-The size of your loan
-Your credit score

The borrower’s credit score

There are many factors that affect the maximum loan amount that a lender will approve. The borrower’s credit score is one of the most important factors. A higher credit score indicates to the lender that the borrower is less likely to default on the loan, and therefore the lender is more likely to approve a higher loan amount. Other factors that can affect the maximum loan amount include the borrower’s employment history, income, and debt-to-income ratio.


As you can see, the maximum conventional loan amount varies by county. For most counties in the United States, the maximum loan amount is $484,350. However, there are a few high-cost counties where the limit is higher. If you’re interested in a conventional loan, you’ll need to consult with a lender to see what the loan limits are for your specific county.

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