FHFA Raises Conforming Loan Limits to $806,500 for 2025
The Federal Housing Finance Agency (FHFA) 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 , 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.
of the 2025 maximum conforming loan limits for all counties and county-equivalent areas in the country.
Latest from NAHBNow
Jul 14, 2025
How Key NAHB Financial Growth Data Can Help Your BusinessAn expert panel discusses the statistics and data that can better inform the financial health of your company compared to U.S. builder and remodeler peers in a Shop Talk about The Cost of Doing Business Study, 2025 Edition.
Jul 11, 2025
Podcast: Unpacking the One Big Beautiful Bill and Its Impact on HousingOn the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez delve into the specifics on the One Big Beautiful Bill Act (OBBBA) and what it means for the housing industry and small businesses.
Latest Economic News
Jul 14, 2025
Despite shrinking lot sizes, values for single-family detached spec home lots continued to rise, with the national median outpacing U.S. inflation and reaching a new high in 2024. The U.S. median lot value for single-family detached for-sale homes started in 2024 stood at $60,000, according to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC) data.
Jul 11, 2025
The share of smaller lots remained record high in 2024, with two out of three new single-family detached homes sold occupying lots under 9,000 square feet (1/5 of an acre or less).
Jul 10, 2025
In the second quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 59, down four points compared to the previous quarter.