It impacts both Fannie Mae and Freddie Mac
The Federal Housing Finance Agency (FHFA) announced conforming loan limit values (CLL) for mortgages acquired by Fannie Mae and Freddie Mac in 2025, reflecting an increase of 5.2% year over year.
For most states, the 2025 baseline conforming loan limit for one-unit properties is $806,500, up by $39,950 from 2024.
The Housing and Economic Recovery Act (HERA) mandates this change based on the annual change in average prices for US homes.
The loan limits shall be more lenient for areas with high costs, where median home values locally exceed the baseline limit.
For one-unit properties, the ceiling limit amounts to $1,209,750, or 150% of the baseline limit.
Meanwhile, special statutory provisions cover Alaska and Hawaii, Guam, and Virgin Islands. For these areas, the baseline loan limit will be set at $1,209,750 for one-unit properties.
However, most counties in the country will see a higher loan limit, with the exception of six counties. This change mirrors the continued shift of housing markets around the country, providing more options for homebuyers and lenders to select from more mortgage options, the FHFA stated.
Homebuyers and lenders are advised to note these new limits when considering mortgage options for 2025.
