What is the maximum term for a residential VA or FHA loan?

The maximum term for a residential VA or FHA loan is indeed 30 years. Both the Department of Veterans Affairs (VA) and the Federal Housing Administration (FHA) allow for this extended repayment period, making it accessible for borrowers to manage their monthly mortgage payments more effectively over a longer duration.

This longer term can be particularly beneficial for first-time home buyers or those with tighter budgets since it can result in lower monthly payments compared to shorter loan terms. A 30-year loan amortizes the loan balance over a longer period, which reduces the amount of each installment, thus providing a less immediate financial burden.

Additionally, this standard of 30 years has been widely adopted in the market, offering borrowers the adaptability they need in managing their finances while still facilitating home ownership. In contrast, the other listed options (15 years, 20 years, and 35 years) either do not represent the maximum allowable term for these loan types or are not typical terms for residential mortgages under VA and FHA guidelines.