The Federal Housing Finance Agency (FHFA) recently announced that it will raise loan limits for mortgages backed by Fannie Mae and Freddie Mac, giving some homebuyers greater purchasing power. Starting in 2025, the maximum conforming loan limit for single-unit properties will increase to $806,500 – a 5.2 % increase from the current limit of $766,550.
The announcement is positive news for homebuyers, who will have the opportunity to borrow more money under conforming loan guidelines. Any loan amount above the conforming limit is considered a jumbo loan, which generally comes with more stringent approval requirements and higher interest rates.
This provides substantial flexibility for borrowers in competitive markets like ours and represents many new opportunities. More homes become accessible, loan terms remain competitive, and the path to homeownership becomes smoother for many buyers.
This change will allow a first-time homebuyer to purchase a home up to $830,000 with as little as 3% down, while a repeat buyer can now purchase an $850,000 home with as little as 5% down.
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