The maximum loan amount for a resale home in the United States is determined by the loan-to-value (LTV) ratio, conforming loan limits, and the borrower’s financial qualifications. For conforming loans (backed by Fannie Mae or Freddie Mac), the maximum LTV is typically 95% for conventional loans with a 20% down payment, or 97% for loans under the Fannie Mae HomeReady program. In high-cost areas, conforming loan limits increase to $1,095,250 (2023), allowing higher purchase prices while maintaining the same LTV. Jumbo loans, which exceed conforming limits, have no fixed cap but require stricter credit checks and higher credit scores.

The primary factors influencing maximum loan amounts include regional conforming loan limits set by the Federal Housing Finance Agency (FHFA), borrower debt-to-income (DTI) ratios (usually capped at 43% for conforming loans), and down payment requirements. For example, a home priced at $1.2 million in a high-cost area might qualify for a $1,095,250 conforming loan (90.4% LTV) with a 10% down payment, while a $800,000 home in a standard area could secure a $760,000 loan (95% LTV) with 5% down. Lenders also consider property appraisals, which ensure the home’s value justifies the loan amount. Data from the FHFA shows that 2023 conforming loan limits rose 8.9% year-over-year in high-cost regions, reflecting rising home prices. Additionally, FHA loans allow 3.5% down payments (96.5% LTV) but require mortgage insurance, increasing overall costs. Borrowers with excellent credit (FICO ≥740) and stable income are more likely to qualify for higher loan amounts. Ultimately, the maximum loan amount balances risk for lenders and affordability for borrowers, guided by government guidelines and market conditions.