Step III Does the 7 year limit affect getting into a residency program?

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Let's say someone went over the 7 year limit. Does it affect the location of residency programs they can get into? E.G. do they only get into programs (certain states) with 10 year and unlimited limits or can they get into any program in any state?
 
It depends on the residency program. In general, as most people do not take Step III until they are in their residencies... it tends to affect fellowship applications more. States that do not have a limit include FL, NY, KY, LA, NH, PA, WY, and CA. So I would concentrate on residencies/fellowships in those states.

Indiana, Iowa, Kansas, Maryland, Nebraska, South Carolina, Virginia, West Virginia, Wisconsin, and Oklahoma all have 10 year limit.

http://www.fsmb.org/usmle_eliinitial.html