A borrower's secured loan's highest dollar limit. Set by the lender according to the purpose of securing the loan as well as various factors related to the borrower. The selected loan program, asset's collateral value, and the borrower's credit history are all factors in the loan-making decision. Different limits for different classes of borrowers exist. Conforming loans, conforming to Fannie Mae and Freddie Mac standards, are limited to the amount of $417,000 for mortgaging consumers.

More On This Topic

Link to This Definition

Did you find this definition of MAXIMUM LOAN AMOUNT helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary