What is the 2025 Conforming Loan Limit?

The 2025 conforming loan limit is $806,500 in most areas across the country

Beginning in 2025, the conforming loan limit is increasing by nearly $40,000. From $766,550 in 2024, buyers can look forward to a baseline conforming loan limit of $806,500.

What Does the 2025 Conforming Loan Limit Mean for Me? 

With homes at the $850-890k price point falling further from the luxury real estate category and toward the standard in many places across the country, the new conforming loan limit offers a helping hand. If everything you want in a home puts your home search in the $800k price range, then your opportunity for qualifying for a mortgage is opening up wide and the affordability of your mortgage is significantly increasing. Let’s take a look at why. 

Conforming vs. Jumbo Loan   

Conventional loans at or below the conforming limit can be purchased by government-sponsored enterprises. The qualifying requirements are relaxed and the loans come at a lower cost. For example, you can put as low as 5% down on a home, meet the debt-to-income ratio requirement more easily, and don’t have to have excellent credit to qualify. The interest rate on your mortgage will also be more forgiving, giving you the best chance at qualifying for an affordable mortgage. 

Loans above the conforming loan limit, on the other hand, are Jumbo Loans. These can only be purchased by private investors who are taking on a fair amount of risk. To mitigate the risk, jumbo investors often require borrowers to meet much higher standards. For example, the minimum credit score could be in the range of 720-740. Having enough income to outweigh your debts by an acceptable margin is also a common challenge when qualifying for a Jumbo Loan. Finally, investors put a financial cushion on Jumbo Loans by charging a higher interest rate. When working with the right lender, the interest rate may only be slightly higher, but it still is a factor that can affect affordability. 

The Impact of the 2025 Conforming Loan Limit  

In 2024, more and more borrowers were faced with an unexpectedly high price range in order to match a home to their needs. Once that price range was within the low $800k’s, the borrower would then be confronted with the challenges of qualifying for a Jumbo Loan. Expensive homes on top of expensive mortgages. But in 2025, the conforming loan limit is adjusting to the market and those borrowers have a better chance at finding a home this year. 

To put it in perspective, someone buying an $845,000 home in 2025 can put just 5% down. Someone buying an $895,000 home can put 10% down and enjoy all the benefits of a conventional loan. That’s a much-needed break. 

High Cost Areas

Just as the limit matches the market, it also matches the needs of a small handful of specific areas where baseline home prices are much higher than they are in the rest of the country. To name a couple, the 2025 conforming loan limit in Nashville, TN is $989,000 and $1,209,750 in San Francisco, CA. To find the 2025 limit in your county, check out the FHFA’s convenient map tool.  

Expert Advice in 20 States 

With offices in Chicago and Nashville and a team of mortgage bankers who can help you secure a home in 18 other states across the country, United Home Loans is here to make qualifying for the best mortgage easy for you. If the new conforming loan limit is going to make your dream home a reality, get pre-approved today!