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These are limits imposed by Fannie Mae and Freddie Mac on the amount of money you can borrow to finance a home purchase. The loan limit generally increases each year and applies to single-family homes in the 48 contiguous states, with higher limits in Alaska, Hawaii, Guam and the Virgin Islands and on homes with two, three and four units.

For example, in 2004, the loan limit for a single-family owner-occupied property is $333,700, and $427,150 for a two-unit property.

Theoretically, no limit applies to the amount a lender can provide under the VA program. But in practice, local lenders generally only lend up to $240,000 with no money down.

Under the FHA 203(b) program, there are also loan limits for owner-occupied homes. The limits vary depending on whether you live in a “high cost” or “low cost” area, as well as the number of units that are being financed.

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