Conventional Loan Limits 2025: How New Conforming Caps Shape Affordability and Opportunity

The 2025 conventional loan limits—set annually by the Federal Housing Finance Agency (FHFA)—determine the maximum loan amounts that Fannie Mae and Freddie Mac will purchase from lenders. For 2025, the baseline conforming limit is $766,550 for single-family homes in most counties, with high-cost areas reaching up to $1,149,825. These limits directly impact how much you can borrow at conforming rates, what homes you can afford, and whether you’ll need jumbo financing to complete your purchase.

Understanding 2025 conventional loan limits is essential for every buyer—whether you’re shopping in a baseline county, a high-cost metro area, or anywhere in between.

In this guide, we’ll explain how 2025 loan limits work, how they vary by county and property type, and what these caps mean for your borrowing power and home affordability.

What Are Conventional Loan Limits?

Conventional loan limits (also called conforming loan limits) are the maximum loan amounts that meet Fannie Mae and Freddie Mac standards. Loans within these limits can be sold to these government-sponsored enterprises (GSEs), which allows lenders to offer lower interest rates and easier qualification compared to non-conforming or jumbo loans.

The FHFA adjusts these limits annually based on changes in national median home prices. When home prices rise, loan limits increase—providing more borrowing power for buyers in high-cost markets.

2025 Conventional Loan Limits by Property Type

Baseline Limits (Most Counties)

For counties where median home prices are below the FHFA’s high-cost threshold, the 2025 conforming loan limits are:

• Single-family home: $766,550
• Two-unit property: $981,500
• Three-unit property: $1,186,350
• Four-unit property: $1,474,400

These limits apply to approximately 85% of counties nationwide—including many suburban and rural areas where housing costs are moderate.

High-Cost Area Limits

In designated high-cost counties—areas where median home prices exceed 115% of the national median—conforming loan limits are higher:

• Single-family home: $1,149,825
• Two-unit property: $1,472,250
• Three-unit property: $1,779,525
• Four-unit property: $2,211,600

High-cost counties include expensive metro areas like San Francisco, New York City, Los Angeles, Seattle, Boston, Washington D.C., and Honolulu, along with vacation markets like Aspen, Nantucket, and the Florida Keys.

How 2025 Loan Limits Impact Borrowing Power

Your county’s conventional loan limit directly affects how much you can borrow at conforming rates. Here’s how it works:

Baseline County Example ($766,550 Limit)

If your county’s conforming limit is $766,550 and you’re approved for a conventional loan with 20% down:

• Maximum loan amount: $766,550
• Maximum purchase price: $958,187 ($766,550 / 0.80)
• Down payment required: $191,637

If you want to buy a home above $958,187, you’ll need to either:

• Increase your down payment to stay within conforming limits
• Accept jumbo financing with higher rates and stricter qualification

High-Cost County Example ($1,149,825 Limit)

If your county’s limit is $1,149,825 and you’re approved with 20% down:

• Maximum loan amount: $1,149,825
• Maximum purchase price: $1,437,281
• Down payment required: $287,456

This higher limit provides significantly more borrowing power in expensive markets—allowing you to purchase homes well over $1 million while still accessing conforming rates.

2025 Loan Limits by State and County: Notable Examples

While every county has its own specific limit, here are some notable examples for 2025:

California High-Cost Counties

• San Francisco, San Mateo, Santa Clara, Marin, Orange Counties: $1,149,825
• Los Angeles, San Diego, Alameda Counties: $1,149,825
• Contra Costa County: $1,019,500
• Kern, San Joaquin, Riverside Counties: $766,550 (baseline)

New York High-Cost Counties

• New York County (Manhattan), Kings (Brooklyn), Queens: $1,149,825
• Westchester County: $1,089,300
• Nassau, Suffolk Counties: $1,019,500
• Upstate counties (Erie, Onondaga, Monroe): $766,550

Washington High-Cost Counties

• King County (Seattle): $1,019,500
• Snohomish, Pierce Counties: $918,750
• Spokane County: $766,550

Other Notable High-Cost Areas

• Washington, D.C.: $1,089,300
• Boulder County, Colorado: $918,750
• Honolulu County, Hawaii: $1,149,825
• Monroe County, Florida (Keys): $1,149,825
• Nantucket & Martha’s Vineyard, Massachusetts: $1,149,825

You can verify your specific county’s 2025 conforming loan limit through Browse Lenders or the FHFA’s official loan limit lookup tool.

How Loan Limits Affect Home Affordability

The 2025 increase in baseline conforming limits—from $766,550—reflects rising home prices nationwide. This increase provides more borrowing power for buyers, but it also highlights the affordability challenges facing many markets.

Example: Baseline County Impact

Let’s say the 2024 baseline limit was $726,200 (hypothetical previous year). The 2025 increase to $766,550 represents a $40,350 increase in borrowing power—or approximately $50,437 more in purchasing power with 20% down.

For buyers in baseline counties, this increase helps offset rising home prices and keeps conforming financing accessible for more properties.

Example: High-Cost County Impact

In high-cost counties, the 2025 limit of $1,149,825 provides substantial borrowing power. With 20% down, buyers can purchase homes up to $1.4 million while accessing conforming rates—significantly better than jumbo financing.

However, even with these higher limits, many properties in San Francisco, Manhattan, or Seattle exceed conforming limits—forcing buyers into jumbo loans with higher rates and stricter qualification.

Real-Life Example: How Loan Limits Shape Buying Decisions

Scenario: Denver County, Colorado

Let’s say you’re buying in Denver County, where the 2025 conforming loan limit is $766,550.

Option 1: Stay Within Conforming Limits

• Purchase price: $950,000
• Down payment: $200,000 (21%)
• Loan amount: $750,000 (within $766,550 limit)
• Loan type: Conforming conventional
• Interest rate: 6.50% (estimated)
• Monthly payment (P&I): $4,741
• Total interest (30 years): $956,000

Option 2: Exceed Conforming Limits (Jumbo)

• Purchase price: $950,000
• Down payment: $100,000 (10.5%)
• Loan amount: $850,000 (exceeds $766,550 limit)
• Loan type: Jumbo
• Interest rate: 7.00% (estimated)
• Monthly payment (P&I): $5,657
• Total interest (30 years): $1,186,000

Savings by staying within conforming limits: $916/month, $230,000 over 30 years

By increasing your down payment from $100,000 to $200,000, you save over $200,000 in interest—a powerful financial argument for staying within conforming limits when possible.

High-Balance Conforming Loans: The Middle Ground

In high-cost counties, high-balance conforming loans bridge the gap between baseline conforming and jumbo financing. These loans exceed the baseline limit ($766,550) but stay within the high-cost limit ($1,149,825), which means they:

• Qualify for conforming rates (slightly higher than baseline, but still better than jumbo)
• Meet Fannie Mae/Freddie Mac standards (can be sold to GSEs)
• Require stricter qualification than baseline conforming (typically 700+ credit, more reserves)

If you’re buying in a high-cost county and your loan amount is between $766,550 and $1,149,825, you qualify for high-balance conforming—not jumbo—which saves money compared to true jumbo financing.

How Credit Scores Interact with Loan Limits

Your middle credit score plays a critical role in maximizing the value of conforming loan limits.

Conforming Loan Credit Tiers

• 740+: Best rates, minimal loan-level price adjustments (LLPAs)
• 700-739: Competitive rates with moderate LLPAs
• 660-699: Higher rates due to increased LLPAs
• 620-659: Highest conforming rates, may not qualify for high-balance loans

Even if your loan amount is within conforming limits, a low credit score can increase your interest rate by 0.50% to 1.50%—negating some of the rate benefits of conforming financing.

If your credit score is below 700, improving it before applying may save tens of thousands of dollars over the life of your loan.

Strategies to Maximize 2025 Loan Limits

1. Know Your County’s Limit Before House Hunting

Check your county’s 2025 conforming loan limit before you start shopping. This helps you set realistic price ranges and avoid accidentally shopping for homes that would require jumbo financing.

2. Target Homes Within Conforming Price Ranges

If your county limit is $766,550 and you’re approved for 20% down, target homes under $958,000. If your limit is $1,149,825, you can shop up to $1.4 million with 20% down—all while accessing conforming rates.

3. Increase Your Down Payment to Stay Within Limits

If you’re $20,000 or $50,000 over the conforming limit, increasing your down payment to stay within conforming limits often saves more money (through lower rates) than keeping cash liquid.

Model both scenarios—conforming with larger down payment vs jumbo with smaller down payment—to determine which offers better long-term value.

4. Consider Multi-Unit Properties

Conforming loan limits are significantly higher for multi-unit properties:

• Two-unit: $981,500 baseline, $1,472,250 high-cost
• Three-unit: $1,186,350 baseline, $1,779,525 high-cost
• Four-unit: $1,474,400 baseline, $2,211,600 high-cost

If you’re interested in house hacking or investment properties, these higher limits provide substantial borrowing power at conforming rates.

5. Shop in High-Cost Counties for More Borrowing Power

If you’re flexible on location, buying in a high-cost county provides significantly more borrowing power at conforming rates. For example, buying in San Francisco County ($1,149,825 limit) allows you to purchase a $1.4 million home with 20% down—all at conforming rates.

Compare this to buying in a baseline county ($766,550 limit), where the same 20% down only supports a $958,000 purchase.

What Happens If You Exceed Conforming Limits?

If your loan amount exceeds your county’s conforming limit, you’ll need jumbo financing—which requires:

• Higher credit scores: 700-740+ required (compared to 620+ for conforming)
• Larger down payments: 15-30% typical (compared to 3-20% for conforming)
• More reserves: 12-24 months of payments in savings (compared to 2-6 months for conforming)
• Stricter underwriting: Lower debt-to-income ratios, enhanced documentation
• Higher interest rates: 0.25%-0.75% higher than conforming rates

Shopping multiple jumbo lenders through Browse Lenders helps you find the most competitive jumbo rates and terms available—but conforming financing remains cheaper when you can stay within limits.

How Loan Limits Affect Refinancing

Conforming loan limits also apply to refinancing—including rate-and-term refinances and cash-out refinances.

If you’re refinancing an existing loan:

• Rate-and-term refinance: Your new loan amount must stay within conforming limits to qualify for conforming rates
• Cash-out refinance: Your new loan amount (after cash-out) must stay within conforming limits for conforming pricing

If your existing mortgage is $800,000 and your county limit is $766,550, you’ll need jumbo refinancing—even if your original loan was conforming when you purchased.

This is why tracking conforming loan limits over time is important—especially in high-appreciation markets where home values (and loan balances) can exceed conforming limits within a few years.

Common Misconceptions About Loan Limits

Myth: Loan limits are the same nationwide

Reality: Loan limits vary by county. Most counties use the baseline limit ($766,550 for 2025), but high-cost counties have limits up to $1,149,825.

Myth: You can borrow up to the loan limit with no money down

Reality: Loan limits determine the maximum loan amount, not the purchase price. You still need a down payment. With 20% down and a $766,550 limit, you can purchase up to $958,187—not $766,550.

Myth: Exceeding loan limits means you can’t get a mortgage

Reality: Exceeding conforming limits means you need jumbo financing—which is available but costs more and requires stricter qualification.

Final Thoughts: Use 2025 Loan Limits to Maximize Borrowing Power

Understanding your county’s 2025 conventional loan limit is one of the most important pieces of information you need before house hunting. This single number determines:

• How much you can borrow at conforming rates
• What homes you can afford within conforming financing
• Whether you need jumbo financing and the associated costs
• How much down payment you need to stay within conforming limits

Connect with verified loan officers through Browse Lenders to get county-specific guidance on 2025 loan limits, transparent rate quotes, and strategies to maximize your borrowing power while staying within conforming limits.

The 2025 conventional loan limits represent both opportunity and constraint—understanding how they apply to your specific county and financial situation helps you make smarter borrowing decisions and access the best mortgage rates available.