FHFA Raises Conforming Loan Limits to $806,500 for 2025
The Federal Housing Finance Agency (FHFA) today announced that the maximum baseline conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2025 will rise to $806,500 — an increase of $39,950, or 5.2%, from 2024.
The conforming loan limits are required by the Housing and Economic Recovery Act to reflect the percentage change in the average U.S. home price during the most recent 12-month or four-quarter period ending before the time of determining the annual adjustment.
In 2025, the conforming loan limit will rise 5.21% because FHFA has determined that the average U.S. home value increased by that amount between the third quarters of 2023 and 2024.
Higher loan limits will be in effect in higher-cost areas as well. The new ceiling loan limit in high-cost markets will be $1,209,750, which is 150% of $806,500. The previous ceiling was $1,149,825.
In its news release, FHFA said that because of rising home values, the ceiling loan limits will be higher in all but six U.S. counties or county equivalents in 2025.
Fannie Mae and Freddie Mac cannot buy mortgages above the conforming loan limit. Any mortgage over that amount is considered a jumbo loan and subject to higher interest rates.
The increase in loan limits for 2025 means that more mortgages will be bought by Fannie and Freddie, which will make it easier for home buyers to qualify for and close their loans. For home builders, it means their clients will find more mortgage options outside of the world of jumbo loans, and it could offer an opportunity for home builders to examine their pricing.
View a list of the 2025 maximum conforming loan limits for all counties and county-equivalent areas in the country.
Latest from NAHBNow
Economics
Jul 18, 2025
Single-Family Starts Weaken in June as Affordability Challenges PersistDue to a solid increase in multifamily production, overall housing starts increased 4.6% in June to a seasonally adjusted annual rate of 1.32 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Safety
Jul 17, 2025
Stay on Top of Wood Framing Safety PoliciesWood framing is an integral part of the home building process, and one job that many general contractors take on themselves. But even with familiarity of the task, specific safety precautions should be followed during framing.
Latest Economic News
Economics
Jul 18, 2025
Single-Family Starts Weaken in June as Affordability Challenges PersistSingle-family housing starts declined in June to the lowest rate since July 2024 as elevated interest rates, rising inventories and ongoing supply-side issues continue to act as headwinds for the housing sector.
Economics
Jul 17, 2025
Builder Confidence Edges Up in JulyBuilder confidence for future sales expectations received a slight boost in July with the extension of the 2017 tax cuts, but elevated interest rates and economic and policy uncertainty continue to act as headwinds for the housing sector.
Economics
Jul 16, 2025
Producer Prices for Metals and Equipment Show Large IncreasesResidential building material prices rose in June, driven primarily by higher construction machinery and equipment part prices. Metal commodities also experienced significant increases, following recently implemented tariffs on steel and aluminum. Meanwhile, price growth for services used in construction continues to outpace both domestic and imported goods.