Rocket Pro TPO today announced that it will be the first one to increase the national conforming loan limit for 2025. Rocket’s current loan limit is $766,550. Starting today, brokers working with Rocket Pro TPO can loan up to $802,650. For Alaska and Hawaii, the limit will increase to $1,203,975.
In an interview with NMP, Rocket Pro TPO Executive Vice President Mike Fawaz said that today, the Detroit-based lender will accept 2025 loan limits instead of 2024 when it comes to conforming loans.
This announcement comes early and marks the third consecutive year that Rocket is the first to announce loan limits. Typically, Fawaz says Rocket’s loan limits are released annually in mid-October; Last year, Rocket announced loan limits on October 2.
“The team works very hard to be able to be the first to go out to market on it,” Fawaz said. “Because of our position and our liquidity, we're able to go out there and offer this because we're going to hold these loans on our books until the new loan limits go out [on November 26]. It's our positioning and who we are that gives us that ability to go out there and offer to our broker partners.”
Rocket's decision reflects its confidence that the federal government will raise the maximum loan limit by at least 4.71% in 2025. Last year, the FHFA's set baseline conforming loan limit for Fannie Mae and Freddie Mac-backed mortgages marked a 5.5% increase from 2023.
Fawaz says the loan limit increases open a door for high-borrowing consumers. “When I think about how this is going to impact [borrowers], this simply can put us in a position from if you have a client that's looking to purchase a home that's above today's loan limit, then they're looking at different products versus conventional,” he said. “Now, starting today, if they fall within the new range…[they] can still continue to qualify for a conventional loan. So it's cost savings and puts the clients in a position to qualify for conventional versus a high balance or a jumbo loan.”
The early loan limit increases are not just a win for Rocket’s broker partners but for borrowers, Fawaz added. “So if [brokers] had conversations in the past where someone didn't make a move or did not fall within these loan limits, this is going to spark a new conversation today,” he elaborated. “I also do believe it's going to put them in a position to go out there to the realtor base and have conversations…lastly, it's really putting them in a position to offer something that's not really available in the market.”
Fawaz went on to comment about the recent dip in mortgage rates ahead of the Fed’s anticipated rate cut next week. “I do believe that we might see some movement in rates next week. However, I think everyone knows that by now, whatever movement that is, if it's not more than a quarter of a point, it's already baked into our pricing today.”
The dip in mortgage rates has driven momentum for Rocket, Fawaz said, noting that Rocket Mortgage’s Welcome Home RateBreak product, released at the end of August, has had a “major impact” on broker partners.
Fawaz also shared comments on the recent appointment of Dan Sogorka to Rocket Pro TPO as its general manager. “I'm excited to continue growing my leadership skills under him and learning from him. You talk about someone who is very, very close to the tech space, someone who thinks about tech and servicing and all things mortgage-related. This is an opportunity for TPO to grow and go out and continue to double and triple down on what we believe this channel can do for Rocket and for the broker community,” Fawaz said. “But I'm selfishly speaking, I want to learn as much as I can from Dan. I want to be someone that's getting to be more comfortable with tech and products.”
