Conforming Loan Limit For 2025 is $806,500 for most areas
If you’re just here for the Conforming Loan limit news, $806,500 is the number for 2025.
Does this mean no one can get a mortgage for more than $806,500? No. The Conforming Loan limit is the maximum amount that can be guaranteed by Fannie Mae and Freddie Mac (the government-sponsored enterprises or GSEs). That guarantee has advantages in terms of the loan approval process and interest rates. There are plenty of mortgage options for higher amounts or that are not guaranteed by the GSEs, but conforming loans account for a vast majority of new mortgages.
$806,500 is the base amount. Higher cost areas have access to higher limits based on the average home prices in that area. The county by county limits are listed separately, LOAN LIMITS.
Where do these numbers come from?
The Federal Housing Finance Agency (FHFA) is the regulator of the GSEs. It publishes various home price data. Once the data is in for the 3rd quarter (typically by late November), it is compared to the 3rd quarter of the previous year and home prices are adjusted by the corresponding amount.
In situations where home prices fall, the limit does not fall, but it will not rise again until home prices move back above the levels associated with the previous limit. For instance, let’s imagine the loan limit was $700k, but prices fell enough to drop it to $600k. The limit would remain at $700k year after year (even if prices were rising) until prices got back above $700k.
All that having been said, even after the deceleration in prices in early 2023, year-over-year numbers remain in positive territory. The following chart includes the Case Shiller HPI which focuses on the 20 largest metro areas (it’s not used for conforming loan limit calculation, but it too is in moderately positive territory year over year).
How about FHA loan limits? FHA is typically 65% of the FHFA Conforming Loan Limit or approx $524,225.
If you are shopping for a mortgage or refinance, I can help you navigate these confusing waters. Just ask me! Call or email.
Jim Haley
Senior Loan Officer
[email protected]
Cell: 630-229-5006
NMLS #:224707
American Nationwide Mortgage Company
1821 Walden Office Square
Suite 453
Schaumburg, IL 60173
Office NMLS #: 1675243
To apply for a mortgage or to get pre-qualified visit this page.