Conventional Loan Limits in 2025
KEY TAKEAWAYS
- The conventional loan limit — also known as the conforming loan limit — indicates the maximum amount you can borrow using a conforming loan.
- The conventional loan limit in 2025 for a single-family home is $806,500 in most places, but goes as high as $1,209,750 in high-cost areas.
- Conventional loan limits vary depending on the county where the property is located and the number of units in the property.

If you plan to purchase or refinance a home in the coming year, understanding the conventional loan limits in 2025 is crucial. These limits directly impact how much you can borrow without crossing into jumbo loan territory, which comes with different rules and higher qualification standards.
Whether buying a single-family home or a multi-unit property, staying informed can help you plan smarter and avoid surprises.
What Is a Conventional Loan?
A conventional loan is a mortgage not insured or guaranteed by the federal government. Instead, private lenders offer it and must meet guidelines established by Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs).
These loans generally require higher credit scores, lower debt-to-income ratios, and more substantial down payments than government-backed loans. However, they also offer competitive interest rates and greater flexibility regarding property types and loan terms.
Conventional Loan Limits
The conventional loan limit sets the maximum amount you can borrow through a conforming loan. For 2025, the conventional loan limits have increased to reflect rising home prices:
- $806,500 for a single-family home in most areas
- Up to $1,209,750 in high-cost areas
These limits apply to loans backed by Fannie Mae and Freddie Mac and are determined by the Federal Housing Finance Agency (FHFA). If your loan amount exceeds the limit for your area, you’ll need to apply for a jumbo loan, which typically involves stricter qualification criteria.
How Do Conforming Loan Limits Work?
A conforming loan meets the guidelines set by Fannie Mae and Freddie Mac, including the conventional loan limit. These limits are designed to ensure access to home financing for a broad range of borrowers, while keeping lenders secure.
The FHFA uses its House Price Index (HPI) to measure home price appreciation each year. Conforming loan limits typically increase if home prices rise to match the new market conditions. This ensures that borrowers can continue to access financing even as homes become more expensive.
If your desired loan amount falls below your area’s loan limit, your mortgage is considered conforming. If it exceeds the limit, it becomes a non-conforming or jumbo loan.
Alternatives to Conventional Loans
If your loan doesn’t meet the requirements for a conforming mortgage, or if you’re seeking more flexible qualifying standards, consider these options:
- FHA loans are backed by the Federal Housing Administration and are ideal for borrowers with lower credit scores or smaller down payments.
- VA loans are offered to eligible veterans and active-duty service members. No down payment is required and borrowers can benefit from flexible loan terms.
- USDA loans are designed for low-to-moderate income buyers in rural areas. Access zero-down financing and highly competitive rates.
- Non-QM mortgages are flexible loans for those who don’t meet traditional income or credit standards. They are great for self-employed borrowers, investors, and anyone else who may not qualify for traditional mortgage options.
Each loan type has its own guidelines and advantages, so it’s worth speaking with a mortgage advisor to determine the best fit for your financial goals.
See If a Conventional Loan Is Right for You
For many buyers, a conventional loan strikes the perfect balance between flexibility, cost, and borrowing power. With loan limits rising to meet market demand, conventional loans are more accessible than ever.
If your loan amount falls within the 2025 conventional loan limits, and you meet the credit and income requirements, this type of loan may offer lower interest rates and fewer fees than other options.
Need help deciding? Start by getting a mortgage pre-approval or download the Griffin Gold app to learn more about how to qualify for a mortgage, the home buying process, and the different mortgage options available. Reach out today to review your mortgage options and find a path to homeownership that works for you.
Find the best loan for you. Reach out today!
Get StartedFrequently Asked Questions
What is the most I can borrow with a conventional loan? 
Your borrowing limit also depends on your eligibility. When determining how much you qualify to borrow, lenders assess your income, credit score, debt-to-income (DTI) ratio, assets, and overall financial health. Just because you can borrow up to the limit doesn’t mean you automatically will — lenders will tailor your loan offer to your specific profile.
Additionally, if you're looking to buy a property in a county with higher-than-average home prices, you may qualify for a high-balance loan, which still falls under the conforming loan category but exceeds the baseline limit. These loans allow you to finance higher amounts while still enjoying the benefits of a conforming loan structure.
How many conventional loans can I have at one time? 
It's important to work with a lender experienced in handling multiple conventional loans and trying to understand the conventional max loan amount, especially if you're growing your real estate portfolio. Planning strategically can help you maximize financing opportunities while complying with lending rules.
How often do conventional loan limits increase? 
The HPI reflects changes in average home prices across the country. If prices go up, loan limits usually rise as well to maintain buyer accessibility. For example, from 2024 to 2025, the baseline limit increased by over $40,000 in response to continued price appreciation in residential markets.
Loan limit increases help keep conventional financing relevant in competitive housing markets. Staying informed about these yearly adjustments is especially important for buyers close to the borrowing threshold or planning to purchase in high-cost areas.
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