The Federal Housing Finance Agency (FHFA) announced 2025 Conforming Loan Limits for all conventional loans delivered to Fannie Mae and Freddie Mac.
What is the 2025 Conforming Loan Limit?
The baseline loan amount for 2025 is as follows:
- 1-unit Property – $806,500
- 2-unit Property – $1,032,650
- 3-unit Property – $1,248,150
- 4 unit Property – $1,551,250
Note that the 2024 baseline loan limit for a 1-unit property was $766,550. Single-family homes, Condominiums, and Townhomes are considered 1-unit properties.
The baseline loan amount means that every county in the country will have a minimum of this loan limit. Some designated high-cost counties will have 2025 loan limits higher than the baseline loan amounts.
2025 High-Balance Loan Limits
The highest high-balance loan amount for 2025 is as follows:
- 1-unit Property – $1,209,750
- 2-unit Property – $1,548,975
- 3-unit Property – $1,872,225
- 4 unit Property – $2,326,875
Note that the 2024 maximum high-balance loan limit for a 1-unit property was $1,149,825.
Not all high-cost counties will have the maximum loan amount mentioned above. For example, while Ventura County in California will have a loan limit of $1,017,750, most of the Bay Area counties in California will have a loan limit of $1,209,750 for one-unit properties.
- High-cost areas are within the following states: California, Colorado, Connecticut, District of Columbia, Florida, Idaho, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Tennessee, Utah, Virginia, Washington, West Virginia, and Wyoming.
What do new Loan Limits mean for a homebuyer?
New loan limits mean you can now get a bigger loan amount by putting down less money. Let’s look at an example:
2024 Baseline Loan Limit:
- Loan Limit- $766,550
- Minimum Down Payment – 3%
- Max Purchase Price – $790,258
2025 Baseline Loan Limit:
- Loan Limit- $806,500
- Minimum Down Payment – 3%
- Max Purchase Price – $831,443
As you can see, you can now buy a home worth $41,185 more and still put only 3% down to qualify for a Conventional loan.
What is the 2025 Conforming Loan Limit in my County?
In San Diego County where I live the new limit is $1,077,550. If you want to refinance or buy a home and are curious about what the new loan limit looks like, here is the link https://singlefamily.fanniemae.com/originating-underwriting/loan-limits to access the county-wide loan limits. Click on the Loan Limit Look-up table.
When does this loan limit go into effect?
While Fannie Mae and Freddie Mac will accept these 2025 loan limits for loans delivered after January 1st, 2025, most lenders will honor them immediately.
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