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
Design | IBS
Jan 09, 2026
From Décor to Resiliency, IBS Design Central Covers It AllAt the 2026 NAHB International Builders’ Show® (IBS) in Orlando Fla., there will be education sessions centered on design. Design Central will offer engaging presentations led by some of the industry’s top professionals, covering everything from décor to sustainability. Here are the Design Central presentations, all taking place at the Orange County Convention Center (OCCC).
IBS
Jan 09, 2026
Final Touches Underway at The New American Home 2026Watching a new home come to life in the final stages of construction is a satisfying experience—not just for the owners, but for the builder as well. That feeling is only amplified when the home is a focal point of the International Builders’ Show (IBS)—the industry’s largest trade show.
Latest Economic News
Economics
Jan 09, 2026
Townhouse Construction Share Gains ContinueAccording to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the third quarter of 2025, single-family attached starts totaled 46,000. Over the last four quarters, townhouse construction starts totaled a strong 179,000 homes, which is 1% higher than the prior four-quarter period (177,000). Townhouses made almost 20% all of single-family housing starts for the third quarter of the year.
Economics
Jan 09, 2026
Job Growth Slowed as 2025 EndedJob growth continued to slow at the end of the year, reinforcing signs of a cooling labor market. Nonfarm payrolls increased by 50,000 jobs in December, while the unemployment rate edged down slightly to 4.4%.
Economics
Jan 09, 2026
Residential Construction Softens Amid Ongoing Housing Market HeadwindsThe latest residential housing market report, delayed by the federal government shutdown last fall, indicates that builders have faced significant headwinds in recent months. Elevated mortgage rates earlier in the year have restrained buyer demand and weighed on home building activity, alongside persistently high construction costs.