If you’re planning to buy a home in 2025, understanding conforming loan limits could save you thousands of dollars—or open the door to even more financing options. These limits, set annually by the Federal Housing Finance Agency (FHFA), determine the maximum size of a mortgage that Fannie Mae and Freddie Mac can purchase or guarantee. In plain terms: it’s the difference between a conventional conforming loan y un jumbo loan, which comes with stricter requirements.
Here’s what’s new in 2025, why it matters, and what you can do to make smart mortgage decisions this year.
Conforming loan limits are the cap on the size of home loans that can be acquired by government-sponsored enterprises like Fannie Mae and Freddie Mac. These limits vary by location, based on average home prices in each area, and are reviewed annually by the FHFA.
In most of the U.S., the baseline conforming loan limit for a single-family home in 2025 has been increased to $750,000, up from $766,550 in 2024. That’s good news for buyers in a rising-rate, high-price housing market.
Property Type | Loan Limit (Most Areas) |
---|---|
1-unit (single-family) | $750,000 |
2-unit | $960,300 |
3-unit | $1,160,900 |
4-unit | $1,442,800 |
Note: These are general limits. Higher-cost areas have higher limits—sometimes exceeding $1 million for single-family homes.
Want to know your local limit? Contact an ALCOVA Mortgage professional for personalized guidance.
If you’re buying in places like California, New York, Virginia’s DC suburbs, or parts of Colorado, the limit could be higher thanks to local housing costs. These high-cost conforming loan limits can go up to $1,125,000 for one-unit properties in 2025.
Not sure whether your county qualifies as high-cost? We’re happy to help you navigate that.
If your loan amount exceeds the conforming loan limit for your county, it’s classified as a jumbo loan.
Here’s the catch:
That’s why staying within conforming limits—when possible—can make the mortgage process smoother and more affordable.
Understanding these limits is critical for:
At ALCOVA Mortgage, we’ll help you explore your options whether you’re shopping within conforming limits—or ready to go jumbo.
The FHFA uses the House Price Index (HPI) to assess year-over-year changes in home values. If prices rise (as they have in recent years), the FHFA increases conforming loan limits to reflect that shift. The 2025 increase continues this trend, giving buyers more flexibility in a market where home values remain elevated.
En 2025 conforming loan limit increase gives homebuyers more borrowing power in a high-cost housing market. Whether you’re buying your first home, upgrading, or investing, knowing where you stand in relation to these limits is key to making confident, strategic decisions.
At ALCOVA Mortgage, we’re here to guide you every step of the way. Let’s talk about your 2025 home goals and build a mortgage plan that works for you.
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