- In 2025, you can borrow up to $806,500 for a conforming loan, though the limit is higher in some areas.
- To borrow more than the FHFA allows for conforming loans, consider applying for a jumbo loan.
- The baseline conforming loan limit in Alaska, Hawaii, Guam, and the U.S. Virgin Islands is $1,209,750 in 2025.
Each year, the Federal Housing Finance Agency (FHFA) adjusts the amount you can borrow with a conforming loan, the most popular type of mortgage.
What are conforming loan limits?
Put simply, conforming loans are loans that can be sold to Fannie Mae or Freddie Mac after closing, and they account for a large share of America's mortgages. Loans that go beyond the conforming loan limits are called jumbo loans.
Are you preparing to take out a mortgage? Here's what you need to know about conforming loan limits for this year.
2025 conforming loan limits
Conforming limits change annually, and there are also different limits for different parts of the country.
Baseline conforming loan limits
In 2025, you can borrow up to $806,500 on a conforming loan in most areas, marking a conforming loan limit increase of almost $40,000 from last year's numbers. These are the borrowing limits for single-unit homes, but you can borrow more for two-unit ($1,032,650), three-unit ($1,248,150), and four-unit homes ($1,551,250).
High-cost area loan limits
In markets where home prices are particularly high, the FHFA allows for larger loan limits.
This higher loan limit is based on the area's median home values and may reach the maximum "ceiling" limit for one-unit properties, which is equal to 150% of the baseline limit. The highest a conforming loan can go on a single-unit property is $1,209,750. This is also the baseline loan limit in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.
If you're wondering if your city has a higher loan limit due to being a high-cost area, you can check the county-level list on the FHFA's website.
Why conforming loan limits matter
Conforming loan limits dictate how much you can borrow using a conforming mortgage loan in your area. They can impact your price range when shopping for a home, so be sure to check the limits for your county before starting the house hunt.
And if you're not sure a conforming loan is right for you, reach out to a mortgage professional. They can offer personalized advice and help you connect with the best mortgage lenders for your situation.
If you use a conforming loan, it can also play a role in your:
Interest rates
Conforming loan rates tend to be lower than those of jumbo and other non-conforming mortgage loans. This can mean a lower monthly payment and fewer long-term interest costs.
Qualification requirements
Conforming loans also tend to be easier to qualify for than non-conforming loans, though they may be stricter than government-backed loans like FHA loans, USDA loans, or VA loans.
Loan availability
Conforming loans are the most common type of mortgage in America, so they're more widely offered. You'll be able to choose from more lenders (and have an easier time comparison shopping) when choosing one of these mortgages.
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Rocket Mortgage -
AmeriSave Mortgage Corporation Mortgages
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New American Funding
Who sets conforming loan limits?
Conforming loans can be sold to Fannie Mae or Freddie Mac, but these entities don't actually set the limits for conforming loans. Those are done by a government agency: the FHFA.
Federal Housing Finance Agency
Conforming loan limits are set by the Federal Housing Finance Agency. The FHFA adjusts these limits annually to keep up with inflation, income trends, and home prices. Over the last decade, conforming loan limits have increased quite a bit. The baseline limit in 2016 was just $417,000.
How conforming loan limits affect you
Conforming loan limits can impact your options as a borrower. Here's how:
If you need to borrow more
If you want to borrow more than the FHFA allows, a jumbo loan may be an option. Jumbo loans are mortgages for people who need more than the FHFA normally allows. They typically have stricter eligibility requirements to qualify for a mortgage and higher interest rates than conforming loans. Jumbo loans are riskier for lenders, so companies make it harder to qualify to decrease the likelihood of a borrower defaulting on payments.
Each mortgage lender has its own requirements for jumbo loans, but you'll probably need a good credit score, a lower debt-to-income ratio, and a bigger down payment than you would for a conforming loan. Expect to need at least a 700 credit score and 20% or more for a down payment. You also may need a debt-to-income (DTI) ratio of 36% to 45%.
The better your credit score, DTI ratio, and down payment, the more you may be approved to borrow with a jumbo loan.
If you qualify for a conforming loan
If you can qualify for a conforming loan — and find a home you like under the conforming loan limits — it can have many benefits. Interest rates are usually lower on conforming loans compared to non-conforming and jumbo loans, and you usually have a wider selection of lenders, too, as these loans are very common.
If you don't qualify for a conforming or jumbo loan, you may want to apply for an FHA mortgage, which is for people with credit scores as low as 580 and a DTI ratio of 43% or lower. The borrowing limit depends on where you live, and you can find the limit for your county here.
You may qualify for a VA mortgage if you're a military member, or a USDA mortgage if you're buying in a rural area. Neither of these types of home loans requires a down payment. VA mortgages do not have a borrowing limit, and USDA mortgages usually have the same limits as conforming loans.
Conforming loan limits FAQs
Yes, the conforming loan limits change annually. The Federal Housing Finance Agency adjusts them based on housing market conditions and local income trends. Visit FHFA.gov to see the 2025 conforming loan limits by county.
No, FHA loan limits are not the same as conforming loan limits. The limits on FHA loans are typically lower than conforming loan limits. For example, FHA loan limits in 2025 are $524,225 at their lowest; conforming loan baseline limits surpass $800,000.
You'll generally need a credit score of at least 620 to qualify for a conforming loan. So if you have a lower credit score, you'll likely have a hard time qualifying for a conforming loan.
A jumbo loan is a type of mortgage that lets you borrow more than the conforming loan limit. These are usually harder to qualify for and require a larger down payment.
Conforming loans meet the qualifying requirements set out by Fannie Mae and Freddie Mac and fall under the conforming loan limits for the area. Non-conforming loans can have larger loan limits but are typically harder to qualify for.
