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Government Loan Limits

Selecting the right mortgage is a big challenge that most US homeowners face while pursuing their dreams of buying a home. The type of loan you choose influences your rate, terms, qualifications, and the type of home you can afford. Factors like monthly interest rates play a crucial role since they directly impact the monthly mortgage payments

As a homeowner, you have two options: either select conventional loans from private lenders or opt for government loans. Government loans are more popular among low-moderate income groups as they are easier to qualify for and have lower down payment requirements. If you have been looking for more lenient eligibility criteria and a smaller down payment, then a government loan is appropriate for you. However, before you begin to apply, it is prudent to understand the latest loan limits so that you can choose the loan that best matches your budget and repayment capacity.

In this article, we look at the different types of government loans and their limits so that you can select the one that suits you perfectly.

Here are the three popular government loans and their loan limits:

FHA loans and their limits in 2024

These are loans that are suitable for first-time homebuyers with lower credit scores. With a lower down payment and easier qualification criteria, FHA loans are a popular option.

2024 is poised to be an excellent year for FHA borrowers since you can have a bigger budget for buying your home. 

FHA loan limits have been raised by the US Department of Housing, and Urban Development (HUD) for most US counties for 2024. 

We now look at the loan limits that have been set for this year for different types of properties:

1. One-unit

  • Most areas  – $498,257
  • High-cost areas – $1,149,825
  • Alaska, Hawaii, Guam, and the US  Virgin Islands – $1,724,725

2. Two-units

  • Most areas  – $637,950
  • High-cost areas – $1,472,250
  • Hawaii, Alaska, Guam, and the US Virgin Islands – $2,208,375

3. Three-units

  • Most areas  – $771,125
  • High-cost areas – $1,779,525
  • Alaska, US Virgin Islands, Hawaii and Guam – $2,669,275

4. Four-units

  • Most areas  – $958,350
  • High-cost areas – $2,211,600
  • Alaska, Guam, Hawai, and the US Virgin Islands – $3,317,400

VA Loan Limits in 2024

The Department of Veterans Affairs offers loan options that are exclusive to veterans and active-duty service members. The interest rates offered are usually competitive, and no down payment is needed.  

The Department of VA removed loan limits for veterans, service members, and their surviving spouses with full entitlement in 2020. Full entitlement denotes that the entire entitlement is available for use if at least one of these criteria is met:

  • You have never utilized the VA home loan benefit
  • You have repaid a previous VA loan fully
  • You used the VA loan benefit but had a short sale or foreclosure and made the repayment in  full

Borrowers meeting this criteria do not have to make a downpayment. Moreover, the VA guarantees the lender up to 25% of the loan if the borrower defaults.

Though VA borrowers with full entitlement do not have loan limits, limits are set for borrowers who have remaining entitlement, including those who have defaulted on their loans or those with already existing active loans.

A glance at the VA loan limits by county:

The limits depend on the medium home values in each county. $766, 550 is the conforming loan limit in 2024 for most places around the continental US. In high-cost housing markets, however, the limit can go as high as $1,149, 825. 

USDA loan limits in 2024

These loans are affordable, zero-downpayment options for low-moderate-income families across all 50 states. The USDA has laid down standard income limits to ensure these loans are readily accessible to families.

These loans are affordable, zero down payment options for low-moderate-income families across all 50 states. The USDA has laid down standard income limits to ensure these loans are readily accessible to families.

To qualify for a USDA home loan, your total household income must not be over the local USDA income limits. 

Here are the loan limits for 2024:

For 1-4 member households – $110, 650

For 5-8 member households – $146, 050

Each of the three above-mentioned government loans has its specific features, advantages, and eligibility criteria. However, the loan you opt for should be based on your budgetary constraints, current financial situation, repayment capacity, and other factors. 

The following comparison chart could help you make a better decision:

Loan Type Minimum down payment Minimum credit score Suitable for
FHA Loans 3.5% 500-580 (based on down payment size) First-time buyers, buyers with low credit scores
VA loans Zero  Typically 640 (varies by lender) Veterans, military members, their spouses
USDA loans Zero Typically 620 (varies by lender) Rural homebuyers, low-income groups without savings


If you are an inexperienced home buyer, comparing the loan limits, features, and benefits offered by each of these government loan options can be daunting. It is better to seek the services of an experienced mortgage provider like Bond Street to help you decide which is the most suitable loan for you. 

With our in-depth in dealing with different types of mortgages, we will simplify the home-buying process, and help you choose a mortgage with the best interest rates, loan limits, and repayment options suitable for your budget.

Explore affordable government loan options with Bond Street Loans for your dream home!

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