maximum loan amount

The dollar limit to which a borrower can secure loans. This limit is set by the lender according to various factors related to the borrower and the purpose of securing the loan. The included factors may be the loan program selected, the value of the asset needing the loan and the borrower's credit history. There are usually different limits set to different classes of borrowers. For example, conforming loans, those that conform to the standards set out by Fannie Mae and Freddie Mac, allow consumers to buy housing mortgages that are limited to the amount of $417,000.