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
Sustainability and Green Building | IBS
Jul 22, 2025
2026 IBS Sustainability & Green Building Scholarship Application Now OpenThe NAHB IBS Sustainability and Green Building Scholarship aims to provide emerging green builders exposure to the world of high-performance homes and help them jump-start their professional journey by attending the International Builders’ Show (IBS).
Housing Finance
Jul 21, 2025
House Bill Restores Funding for Several Housing Programs from Trump BudgetThe House Appropriations Committee has voted to restore funding for key housing programs that President Trump eliminated in his “skinny budget,” such as housing choice vouchers, project-based rental assistance and the Community Development Block Grant (CDBG) program.
Latest Economic News
Economics
Jul 22, 2025
Top 10 Builder Market Share Across MetrosAn earlier post described how the top 10 builders in the country captured a record 44.7% of new single-family closings in 2024. BUILDER Magazine has now released additional data on the top ten builders within each of the 50 largest new home markets in the U.S., ranked by single-family permits.
Economics
Jul 21, 2025
Use of Private Water and Sewer Systems in New Single-Family HomesThe share of new single-family homes built with individual septic systems declined slightly in 2024 compared to the previous year, while the share of homes served by private wells remained steady.
Economics
Jul 21, 2025
Sales of Lower-Priced New Single-Family Homes Declined Over the Past Five YearsFrom 2020 to 2024, sales of lower-priced new homes declined significantly as the market moved toward higher-priced segments. Rising construction costs—driven by inflation, supply chain disruptions, and labor shortages—as well as higher regulatory costs, made it increasingly difficult for builders to construct affordable homes.