What You Need to Know About 2025 Conforming Loan Limits for Single-Family Homes

by Rama Mehra

Big news for homebuyers in 2025! Starting January 1, the conforming loan limits for single-family homes are increasing, making it easier for more buyers to qualify for government-backed mortgages. Here's a breakdown of what’s changing and how it may affect you.

New Loan Limits for 2025

The baseline conforming loan limit for single-unit properties will rise to $806,500, up from $766,550 in 2024. That’s an increase of $39,950, or about 5.2%. This higher limit means you can borrow more without needing a jumbo loan, which often comes with stricter requirements and higher interest rates.

Counties With Even Higher Limits

In most areas, the $806,500 limit will apply. However, in high-cost areas where housing is more expensive, the conforming loan limit will be even higher. For example:

The highest limit for 2025 will be $1,209,750, which applies to 99 counties across the U.S.
A total of 150 counties will have limits above the $806,500 baseline.

If you’re buying in a high-cost area, these increased limits could be a game-changer.

Counties With No Changes

While the majority of counties will see an increase, there are six counties where the loan limit will stay the same:

California: Napa County
Colorado: Routt County and San Miguel County
Utah: Summit County, Wasatch County, and Wayne County

If you’re planning to buy in one of these counties, the 2024 limits will still apply in 2025.

When Can You Take Advantage of the New Limits?

The updated limits will be available as soon as our systems are ready—likely by mid-December 2024. That means you can get a jump start on your home purchase or refinance before the official start of the new year.

What This Means for You

With higher conforming loan limits, more buyers can qualify for affordable mortgages without needing to jump into the jumbo loan category. This could open up more opportunities to find your dream home, especially in high-cost areas where housing prices continue to climb.

If you're considering buying a home or refinancing in 2025, now is a great time to explore your options. With these changes, you may be able to afford more than you thought!

Source: "FHFA Announces Conforming Loan Limit Values for 2025,” Federal Housing Finance Agency, November 26, 2024.