The conforming loan limit increase takes effect immediately on common and high-cost counties, according to John Strange, a senior loan officer at Gustan Cho Associates. By now, you may have heard of the updated conforming loan limit thresholds for 2025. Due to increasing home prices, the FHFA and HUD have increased the Conforming loan limit yearly.
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Conforming Loan Limits in Your County$0.0
The conforming loan limits by county are compiled from the Federal Housing Finance Agency (FHFA). HUD, the parent of FHA, sets the FHA Loan limits by county in all 50 states. The baseline conforming mortgage loan limits for single-family homes in standard areas is $766,550, for two-unit homes is $981,500, three-unit homes is $1,186,350, and for four-unit homes is $1,474,400.
Conventional loans are referred to as conforming loans. The reason conventional loans are referred to as conforming loans. Conventional loans need to conform to Fannie Mae or Freddie Mac agency guidelines.
Conventional loans are not backed or insured by a government agency. Conventional loans need to conform to Fannie Mae or Freddie Mac agency guidelines because the two mortgage giants will not purchase any loans that do not conform to its guidelines. This guide covers conforming loan limits for 2025 for standard and high-balance loans.
Conforming and FHA Loan Limit on Standard and High-Balance Loans
Conforming and FHA (Federal Housing Administration) loans are two types of mortgage loans used in the United States to help buy homes. High-balance FHA and conforming loans have unique features and follow different rules. Due to their higher amounts, high-balance conforming loans generally come with elevated interest rates compared to standard conforming loans.
In 2025, the maximum limit for high-balance conforming loans in high-cost areas is $1,149,825. The limits for high-balance conforming loans are even higher for multi-family homes with four units in high-cost areas.
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Conforming loans conform to the guidelines and loan limits set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. Conforming loans are considered “standard” when they adhere to the standard loan limits established by the GSEs for a particular area. There are also high-balance conforming loans in high-cost areas with higher loan limits:
Conforming loan limits can vary by location and are typically adjusted annually. Standard conforming loans typically have lower interest rates.
Conforming loans are more readily available to borrowers with good credit and financial stability. Conforming loans often require a down payment, with 20% down being a common benchmark to avoid private mortgage insurance (PMI), although lower down payment options may be available.
High-Balance Conforming Loans
High-balance-conforming loans have higher conforming loan limits because they are in high-cost areas. Agency mortgage guidelines are the same but lender can have overlays on high-balance loans. HUD and the FHFA set new maximum conforming loan limits yearly in standard and high-cost areas. High-balance conforming loans are only eligible in high-cost areas.
The eligibility guidelines on high-balance conforming and FHA loans are the same. High-balance conventional loans are often referred to a Jumbo Conforming Loans.
However, 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).
Areas Eligible For High-Balance Conforming Loan Limit
The conforming loan limits for high-balance conforming loans can vary by location and change annually. These limits are set based on the median home prices in a particular area. In high-cost housing markets, where home prices are significantly higher than the national average, the conforming loan limits are higher to accommodate the increased home purchase cost.
What Are Jumbo Conforming Loans
A Jumbo Conforming Loan, also known as a High Balance Conforming Loan, is a type of mortgage loan that falls between the limits of a standard conforming loan and a Jumbo loan. A Jumbo Conforming Loan is essentially a mortgage that falls between the limits of a standard-conforming loan and a jumbo loan.
Jumbo conforming loans are designed for borrowers who need a loan amount that exceeds the standard conforming limit but is still below a certain threshold set by Fannie Mae and Freddie Mac.
The exact loan limits for Jumbo Conforming Loans can vary by location and are periodically adjusted to reflect changes in housing prices. Borrowers who qualify for Jumbo Conforming Loans may benefit from more favorable terms than traditional Jumbo loans but still have access to larger loan amounts than standard conforming loans. Remember that mortgage loan limits and guidelines can change over time, so it’s essential to consult with a mortgage lender or financial advisor to get the most up-to-date information regarding Jumbo Conforming Loans in your area if you are considering one.
Updated Conforming Loan Limit For 2025
The baseline conforming loan limit for most parts of the United States was $766,550, but high-cost areas have higher conforming loan limits. High-balance conforming loan limit for 2025 is capped at $1,149,825 for single-family homes. It’s important to note that these limits may have changed since then and are usually adjusted annually. You should check with Fannie Mae, Freddie Mac, or a mortgage lender for your area’s most up-to-date high-balance conforming loan limits, as these limits can change from year to year.
The Federal Housing Finance Agency increased conforming loan limit for 2025 to $766,550. The Federal Housing Finance Agency is the regulatory agency for Fannie Mae and Freddie Mac, the two largest mortgage giants in the nation.
The Federal Housing Finance Agency (FHFA) has been increasing conforming loan limit caps yearly. In 2020, the FHFA released conforming loan limit caps from 2019 ($484,350) to 2020 ($510,400). This blog will detail how you can utilize the updated loan limits after January 1, 2025, which is capped at $766.550 from 726,200 in traditional areas and $1,149,825 from $1,083,300 in high-cost areas on single-family homes.
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Why is the 2025 Conforming Loan Limit Increase Taking Effect Immediately Important. If you are using a conventional mortgage product, you must followFANNIE MAE andFREDDIE MAC guidelines. One of their guidelines will be a maximum loan amount.
For the calendar year 2025, the maximum cap on conforming loan limit is capped at $766,550.
For example, utilizing the 2025 conforming loan limit of $766.550 can help you purchase a $800,000 house with a 5% down payment. 5% of $800,000 is $40,000 The new conventional loan amount financed with the 5% down payment is $760,000 which is within the maximum conforming loan limit cap of $766,550.
Benefits Of Higher Loan Limit Increase
You may be in the process of a cash-out refinance and would like to take out more money. Or looking to purchase a home and having trouble qualifying for a jumbo mortgage. There is a good possibility the extra loan amount can help you. For example, your home is worth $987,000 and you owe $687,000. You would like to complete a cash-out refinance to buy a vacation rental With the current 2025 loan limits, you can only raise your loan amount to $766,550. So the total cash out would be 80 loan-to-value (minus closing costs) of the appraised value but cannot exceed the conforming loan limit. The maximum cash-out loan-to-value on conforming loans is 80% LTV. For more information on cash-out refinances, please visit our CONVENTIONAL CASH OUT GUIDELINES blog.
Starting The Mortgage Process With Higher Loan Limit Before The Official Start Date
Where are most lenders need to wait until January 1, 2025, to start an application with the new loan amounts, we are able to start the process today. What requirements are necessary to utilize new loan amounts today?
620 credit score
5% down payment (3% for first time home buyers)
Debt to Income up to 49.99% (under 43% preferred)
Mortgage insurance is required for the down payment of less than 20%
Borrowers who need to qualify and get pre-approved for a conventional loan with a lender with no overlays, the team at Gustan Cho Associates can help. One of the highly skilled loan officers from Gustan Cho Associates will assist you. You’ll be sent an application link and asked to send in the following documentation:
Taking Advantage of Conforming Loan Limit Increase Prior To New Year
Many homebuyers are getting priced out of the housing market due to skyrocketing home prices. Depite high rates, it is still a seller market.
Last 60 Days Bank Statements – to source down payment
Driver’s License
Last 30 Days Pay Stubs
Last Two Years W2’S
Last Two Years Tax Returns – if other income besides W2 is reported
Getting Qualified For a High Loan Limit Conventional Loan
You will then complete the pre-approval process and begin shopping for a property. If you are trying to completely refinance transaction, please send the following documentation:
Driver’s License
Last 30 Days of Pay Stubs
Last Two Years Tax Returns – if other income besides W2 is reported
Last Two Years W2
Current Mortgage Statement
Homeowners Insurance Policy
Qualifying For A Mortgage With a Lender With No Overlays
At Gustan Cho Associates, we offer a wide range of mortgage products. We do not have any LENDER OVERLAYS on FHA, VA, or Conventional mortgage loans.
Over 80% of our clients have been turned down by their current lenders or are not getting the customer service they deserve. Mortgage lending can be confusing. We have seen many one-off situations and can help more clients than most banks.
If you do not qualify today, we will set up a customized financial plan to have you qualified as soon as possible. We are available seven days a week for any mortgage advice. Please give us a phone call today. How to start the process? To apply for a mortgage with the updated loan amount, simply call Gustan Cho Associates at (800) 900-8569, Text us for a faster response. Or email us at gcho@gustancho.com.
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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 the waiting period after foreclosure requirements for borrowers on title but not on mortgage was updated on July 7th, 2025.
Explore Your Loan Options: Conforming vs. FHA Loans
Contact us now to find out how you can qualify for an unsecured personal loan and get the funds you need.
High-balance-conforming loans have higher conforming loan limits because they are in high-cost areas. Agency mortgage guidelines are the same but lender can have overlays on high-balance loans. HUD and the FHFA set new maximum conforming loan limits yearly in standard and high-cost areas. High-balance conforming loans are only eligible in high-cost areas.
High-balance-conforming loans have higher conforming loan limits because they are in high-cost areas. Agency mortgage guidelines are the same but lender can have overlays on high-balance loans. HUD and the FHFA set new maximum conforming loan limits yearly in standard and high-cost areas. High-balance conforming loans are only eligible in high-cost areas.
