The maximum amount you can borrow for a down payment loan depends on the loan program, creditworthiness, and property value. For example, FHA loans allow as low as 3.5% down payment (2023 guidelines), while conventional loans typically require 5-20%. Some programs like VA or USDA loans offer 0% down payment under specific conditions. Lenders also consider debt-to-income ratios (DTI) and credit scores, with DTI below 43% often required for conforming loans.

The primary factors influencing borrowing capacity include loan type, income stability, and property appraisals. For instance, FHA loans permit lower down payments but require mortgage insurance (MI), adding 0.5-1.05% to the loan cost. Conventional loans with 20% down avoid MI, reducing long-term expenses. Data from the National Association of Realtors (2023) shows 63% of buyers used conventional loans, averaging a 13% down payment, while 7% used FHA loans (6% average). VA loans, available to veterans, accounted for 6% of purchases with 0% down. Lenders also assess DTI ratios; Fannie Mae’s 2024 standards cap DTI at 43% for conforming loans, limiting borrowing capacity. First-time buyers often rely on down payment assistance programs, which can cover up to 5% of the purchase price through state or employer initiatives. For example, the Department of Housing and Urban Development (HUD) reports 2,000+ local programs offering $10,000+ grants in 2022. Thus, borrowing limits for down payment loans hinge on program eligibility, financial health, and market incentives.