The phrase "a loan limit" is correct and usable in written English.
It can be used when discussing the maximum amount of money that a lender is willing to provide to a borrower.
Example: "Before applying for a mortgage, it's important to understand what your loan limit is based on your financial situation."
Alternatives: "credit limit" or "borrowing cap".
Since January 2015, there has been a cap on payday lenders, imposed by UK watchdog the Financial Conduct Authority, with interest and fees capped at 0.8% a day and the total cost of a loan limited to 100% of the original sum.
In an interview, Mrs. Clinton maintained that Mr. Lazio had betrayed his constituents by opposing a higher loan limit, and said that she would have championed the proposal.
In Los Angeles, for example, a new loan limit of $700,000, or 125% of the current median price, would suddenly place 32% of homes in that metro under Freddie and Fannie's umbrella, according to Radar Logic.
The Export-Import Bank, for instance, wanted a new, long-term authorization with an expanded loan limit and broader authority.
On the flip side are groups like the NATIONAL ASSOCIATION OF REALTORS® (NAR) and National Association of Home Builders (NAHB), who fear the nation's housing market will be held hostage by Wall Street's terms and interest rates should an FHA loan limit extension fail to pass.
A change in the conforming loan limit could give a much-needed boost to the market, said Jim Abbott, a real estate agent there.
The most popular loan type is the Home Equity Conversion Mortgage (HECM), which is administered by the U.S. Department of Housing and Urban Development (HUD); the current loan limit on a standard HECM is $625,500, although a new "saver" HECM was introduced last fall with lower loan limits and fees.
Of course, prices for some houses in certain California enclaves and other luxury locations remain so stratospherically high that a change in the conforming loan limit, no matter how drastic, would have little effect.
Understanding the issue of loan limit contraction requires a basic knowledge of FHA mortgages.
