2025 Loan Limits – Conventional Conforming & FHA
(The BuildBuyRefi Team Offers Non-Conforming Options Up to $3 Million +)
Updated: January 5, 2025
These increases reflect a 5.2% boost from 2024, demonstrating the FHFA's commitment to keeping pace with rising home values. The high-cost area limits apply in markets where 115% of the local median home value exceeds the baseline limit.
2025 Maximum Loan Limits for FHA Financing
FHA loans remain popular for first-time homebuyers and those with moderate income levels.
Here are the new FHA loan limits for 2025:
1 Unit = $524,225
2 Unit = $671,400
3 Unit = $811,500
4 Unit = $1,008,450
For FHA financing, the "ceiling" in high-cost areas features the following limits:
1 Unit = $1,209,750
2 Unit = $1,549,500
3 Unit = $1,873,000
4 Unit = $2,326,250
Special exception areas like Alaska, Hawaii, Guam, and the U.S. Virgin Islands have even higher limits:
1 Unit = $1,814,625
2 Unit = $2,324,250
3 Unit = $2,809,500
4 Unit = $3,489,375
VA Loans: Supporting Our Veterans
VA loans offer exceptional benefits for our veterans and active service members. While there's no official VA loan limit for veterans with full entitlement, lenders often use the FHFA conforming limits as guidelines. This means qualified veterans can potentially access loans up to:
$806,500 in most areas
$1,209,750 in high-cost markets
Remember: Veterans with full entitlement may qualify for even higher amounts, subject to lender approval and proper documentation.
USDA Rural Development Loans: Supporting Rural Communities
USDA loans are unique because they are location-specific and designed to promote homeownership in rural areas. While the USDA doesn't set universal loan limits, it considers each area's median home prices when determining maximum loan amounts. These limits vary by county and are regularly updated to reflect local market conditions.
What This Means for You
These increased loan limits open up new possibilities for homebuyers across the country. Whether you're:
A first-time homebuyer looking at FHA loans
A veteran exploring VA loan options
A buyer interested in conventional financing
Someone looking to purchase in a rural area with a USDA loan
BuildBuyRefi.com is here to help you navigate these options and find the best fit for your situation.
Ready to Take the Next Step?
Understanding loan limits is just one part of the homebuying journey. Our experienced team at BuildBuyRefi.com can help you:
Determine which loan type best suits your needs
Calculate how much home you can afford
Navigate the pre-approval process
Find the most competitive rates
Contact us today to learn more about how these new loan limits can help you achieve your homeownership goals in 2025.
Note: Loan limits and guidelines are subject to change. Always consult one of our qualified mortgage bankers for the most current information about your situation.
Understanding Conforming Loan Limits for 2025
When considering a mortgage, one of the key figures you'll encounter is the conforming loan limit. This is the maximum amount that Fannie Mae and Freddie Mac, the government-sponsored enterprises that back most U.S. home loans, are willing to purchase from lenders. Here's what you need to know about the conforming loan limits for 2025:
Annual Adjustments: The Federal Housing Finance Agency (FHFA) adjusts the conforming loan limits annually to reflect changes in the average U.S. home price. For 2025, these adjustments ensure that the limits keep pace with the housing market, enabling borrowers to access financing that matches property price increases.
Baseline Limit Increase: The baseline conforming loan limit has increased for most areas in the United States. This adjustment means borrowers in many regions can borrow more without entering the jumbo mortgage territory, which typically comes with stricter underwriting standards and potentially higher interest rates. The increase in most areas of the United States
High-Cost Area Considerations: Higher limits apply in some high-cost regions where 115% of the local median home value exceeds the baseline conforming loan limit. These areas allow borrowers to access more significant loan amounts without needing a jumbo loan, making homeownership more accessible in regions with higher home prices.
Special Statutory Provisions: Specific areas such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands have even higher loan limits due to the elevated costs of living and construction. These provisions ensure that residents in these locations can also access financing that reflects their unique market conditions.
Impact on Borrowers: The increase in conforming loan limits can significantly impact borrowers by providing more flexibility in financing options, potentially lower interest rates compared to non-conforming loans, and increased access to homeownership in both standard and high-cost living areas.
Potential homebuyers and those looking to build, buy, refinance, or renovate must understand these updates and how they might affect their borrowing options. Consulting with a mortgage professional can help you navigate these changes and determine the best path forward based on your financial situation and housing market conditions.
The Previous Year for 2024 Maximum Loan Limits
1 Unit = $766,550
2 Unit = $981,500
3 Unit = $1,184,925
4 Unit = $1,472,550
2024 High Balance/Super Conforming Loan Limits:
1 Unit = $1,149,825
2 Unit = $1,472,250
3 Unit = $1,779,525
4 Unit = $2,211,600
High Balance Conforming Limits were only allowed in select counties where high balance limits applied.
2024 FHA Maximum Loan Limits:
1 Unit = $498,257
2 Unit = $637,950
3 Unit = $771,125
4 Unit = $958,350
Special exception areas like Alaska, Hawaii, Guam, and the U.S. Virgin Islands had higher limits in 2024:
1 Unit = $1,724,725
2 Unit = $2,208,375
3 Unit = $2,669,275
4 Unit = $3,317,400
Prior Year 2023 Maximum Loan Limits
1 Unit = $726,200
2 Unit = $929,850
3 Unit = $1,123,900
4 Unit = $1,396,800
The Previous Year For 2023 High Balance/Super Conforming Loan Limits
*High Balance Conforming Limits are only allowed in select counties where high balance limits apply.1 Unit = $1,089,300
2 Unit = $1,394,775
3 Unit = $1,685,850
4 Unit = $2,095,200
