The Federal Housing Finance Agency (FHFA) has announced that in most of the U.S., conforming loan limits (CLL) for mortgages acquired by Fannie Mae and Freddie Mac in 2025 will be $806,500, an increase of $39,950 (5.2%) from 2024’s cap of $766,550.
A few mortgage lenders announced increased conforming loan limits as early as September in anticipation of the FHFA’s cap increase, as has become customary in recent years.
Rocket Pro TPO and PennyMac TPO announced new conforming loan limits of $802,650 in mid-September. United Wholesale Mortgage (UWM) followed suit, announcing a slightly higher cap of $803,500.
In high-cost areas where 115% of the local median home value exceeds the baseline conforming loan limit value, the applicable loan limit will be higher than the baseline loan limit.
The Housing and Economic Recovery Act (HERA) requires FHFA to adjust Fannie and Freddie’s baseline CLL value each year to reflect the change in the average U.S. home price. HERA establishes the high-cost area limit in those areas as a multiple of the area median home value, while setting the ceiling at 150% of the baseline limit.
According to the nominal, seasonally adjusted, expanded-data FHFA Home Price Index (HPI), house prices increased 5.2%, on average, between the third quarters of 2023 and 2024.
Median home values generally increased in high-cost areas in 2024, which increased their CLL values to a new ceiling for one-unit properties of $1,209,750 (150% of $806,500).
Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limits will be $1,209,750 for one-unit properties.
Due to rising home values, the CLL values will be higher in all but six U.S. counties or county equivalents.
