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 is great news for buyers,” said Mike Gambatese, SVP of mortgage lending at Proper Rate, which frequently works with @properties Christie’s International Real Estate clients. “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.”
Gambatese explained that the 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.
The exact conforming loan limit varies geographically. While it will increase to $806,500 throughout most of the country including Illinois, Michigan, Indiana, and Wisconsin, it will be higher – up to $1,209,750 – in more expensive markets such as areas in California and New York.
For more information about your local market, reach out to your trusted @properties Christie’s International Real Estate agent, and click here for additional mortgage news and insights.
