Conforming Loan Limit Change – See If You Qualify

2025 Conforming Loan Limit Guide: What Borrowers Need to Know

At Gustan Cho Associates, we want to help you understand how the conforming loan limit impacts your home loan. Whether you’re buying, refinancing, or shopping in a high-cost area, this guide explains the updated current conforming loan limits for 2025 and how they can help you qualify for more.

What Is the Conforming Loan Limit and Why Does It Matter

The conforming loan limit is the highest amount Fannie Mae and Freddie Mac will back. In 2025, this baseline limit increased to $766,550 for single-family homes. For high-cost areas, the limit goes up to $1,149,825.

These amounts change each year based on home price trends. Wondering how often conforming loan limits change? The FHFA adjusts them annually, usually announced in late November. This announcement of a conforming loan limit increase for 2025 was welcome news for many buyers.

Use Our Conforming Loan Limit Lookup by ZIP Code

You can use our interactive conforming loan limit map to find your area’s exact limit. Just select your state and county. If you’re asking, “What’s the conforming loan limit for a duplex in Texas or a triplex in California?”—we’ve got you covered.

First Select Your State And Then Your County And The Conforming Loan Limits Will Appear.

Our website features an interactive tool for exploring conforming loan limits across various regions. With this tool, you can compare the loan limits by county, look up specific caps based on ZIP codes, and effectively plan your home purchase or refinancing strategy.

Conforming Loan Limits in Alaska, Hawaii, and U.S. Territories

Are you looking for loans in Alaska, Hawaii, Guam, or the Virgin Islands? These areas have higher conforming loan limits due to the cost of living. Check the updated loan caps in our ZIP code tool.

Conforming Loan Limits for 2-Unit, 3-Unit, and 4-Unit Properties

Here’s the 2025 breakdown for standard areas:

• 1-unit: $766,550
• 2-unit: $981,500
• 3-unit: $1,186,350
• 4-unit: $1,474,400

Understanding conforming loan limits becomes crucial when considering the purchase of multi-unit properties such as duplexes or triplexes. These limits ensure buyers can secure financing without venturing into the more expensive non-conforming loan territory.

For two-unit and three-unit properties, the conforming loan limits allow potential homeowners to access a significantly higher loan amount than single-family homes. This can open up various investment opportunities and enable buyers to generate rental income from the additional units, making it an attractive option for many.

Moreover, opting for a conforming loan comes with additional advantages. Typically, these loans offer better interest rates and terms compared to their non-conforming counterparts, which can result in substantial savings over time. The approval process for conforming loans is generally more straightforward, allowing buyers to navigate the often-complex world of real estate financing with greater ease. As a result, investors looking at multi-unit properties can not only benefit from higher borrowing limits but can also enjoy a smoother path to securing their financing.

If you want to find out your county’s Fannie Mae conforming loan limits, use our lookup tool. The limits vary, especially in those high-limit counties in California.

Conforming vs Jumbo Loan Limit Difference

If your loan exceeds the conforming loan limit, it’s a jumbo loan. These loans come with stricter rules, higher credit score needs, and bigger down payments. So, staying within the conforming loan limit helps keep things simpler and cheaper.

FHA Loan Limits vs Conforming Loan Limits

FHA loans are backed by HUD, not Fannie Mae or Freddie Mac. FHA limits are usually lower than conforming loan limits, but they also vary by county. This means your eligibility can change based on your loan type and location.

High-balance conforming and FHA loans have higher mortgage rates than standard conforming and FHA loans. Lenders consider high-balance conforming and FHA loans higher risk loans. The higher the risk, the higher the mortgage rates. Pricing hits on mortgage rates are called loan-level pricing adjustments. High-balance conforming loans can come in various term options (e.g., 15, 20, or 30 years).

Income Requirements for Conforming Loans

Do you meet the conforming loan limit income requirements? Lenders check your debt-to-income ratio (DTI), which usually must be below 50%. You’ll also need stable income, a 620+ credit score, and enough assets to cover the down payment.

How Conforming Loan Limits Impact Mortgage Rates

Staying within the conforming limit helps you get better mortgage rates. Jumbo loans often have higher rates and stricter rules. So the 2025 increase means more borrowers can stay within the conforming range and save money.

How to Apply With the 2025 Conforming Loan Limit

Gustan Cho Associates is helping homebuyers and homeowners get started on the mortgage process by using the new loan limits for 2025. While most lenders will wait until January 1st to make these changes, Gustan Cho Associates is acting early to make the mortgage experience easier.

This approach gives clients an advantage, allowing them to navigate the changing lending landscape with confidence.

By using the updated loan limits ahead of time, Gustan Cho Associates shows its commitment to helping clients more effectively. This commitment not only enhances customer service but also allows individuals to enjoy better financing options sooner. As the housing market evolves, having early access to these benefits can significantly help those looking to buy or refinance their homes.

Basic requirements:

• 620 credit score or higher
• 3–5% down (first-time buyers can go as low as 3%)
• DTI under 49.99%
• Mortgage insurance for under 20% down

Cash-Out Refinance and the Conforming Loan Limit

If you’re looking to use your home’s equity with a cash-out refinance, it’s good to know about the conforming loan limit. This limit is basically the highest amount you can borrow against your home, even if you want to pull out some of your home’s equity. For instance, if your house is worth $987,000 but the loan limit is $766,550, getting that difference is crucial because it sets your borrowing boundaries.

When you’re figuring out a cash-out refinance, make sure to check how much equity you can actually access while sticking to those limits. This means looking at what you still owe on your mortgage and deciding how much additional cash you want from your home’s equity. A clear picture of these numbers is key to ensuring your refinance aligns with the rules and supports your financial plans.

Why Work with Gustan Cho Associates?

We specialize in helping borrowers who were turned down elsewhere. Whether you’re self-employed, have credit challenges, or want to maximize your buying power under the conforming loan limit, we’re here to help.

Borrowers who need a five-star national mortgage company licensed in 50 states with no overlays and who are experts on conforming loans, please contact us at 800-900-8569, text us for a faster response, or email us at alex@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays.

Frequently Asked Questions About Conforming Loan Limits:

Q: What is the Conforming Loan Limit for 2025?

A: In most areas, the conforming loan limit for 2025 is $766,550 for a single-family home. In high-cost areas, it can go up to $1,149,825 or more, depending on the number of units and location.

Q: Why Does the Conforming Loan Limit Change Every Year?

A: The conforming loan limit changes yearly because home prices keep rising. The FHFA updates the limit to help more people qualify for loans that follow Fannie Mae and Freddie Mac rules.

Q: How do I Find the Conforming Loan Limit in My County?

A: To find the conforming loan limit for your area, select your state and county on our website tool or visit the official FHFA website. The limits can differ based on where you live.

Q: What Happens if My Loan is Higher Than the Conforming Loan Limit?

A: If you take out a loan that exceeds the conforming loan limit, it is called a jumbo loan. Jumbo loans typically have more stringent regulations, elevated interest rates, and increased down payment expectations.

Q: Can I Still Get a Conforming Loan with a Small Down Payment?

A: Absolutely! First-time homebuyers can secure a conforming loan with a down payment of just 3%. For most other buyers, a minimum of 5% down is required to be eligible.

Q: What’s the Difference Between a Standard and High-Balance Conforming Loan?

A: A standard conforming loan stays under the regular loan limit ($766,550), while a high-balance conforming loan is for homes in high-cost areas and allows you to borrow more, up to $1,149,825 or more, depending on the property size.

Q: Is a Conforming Loan the Same as a Conventional Loan?

A: Yes, most conventional loans are also conforming loans because they follow the rules set by Fannie Mae and Freddie Mac, including staying within the conforming loan limit.

Q: Does the Conforming Loan Limit Affect How Much I Can Cash Out on a Refinance?

A: Yes. If you’re doing a cash-out refinance, your loan amount still has to stay within the conforming loan limit. That’s why the 2025 limit increase is good news—it lets you access more equity.

Q: Can I Apply for a Mortgage Using the New 2025 Conforming Loan Limit Right Now?

A: Yes! At Gustan Cho Associates, we’re helping borrowers apply using the new 2025 conforming loan limits—even before many other lenders officially begin.

Q: What Credit Score do I Need for a Conforming Loan in 2025?

A: You’ll need at least a 620 credit score for most conforming loans. You’ll also need mortgage insurance if you’re putting down less than 20%.

This blog about “Conforming Loan Limit Change – See If You Qualify” was updated on July 31st, 2025.