The Federal Housing Finance Agency (FHFA) has announced that the conforming loan limit values (CLLs) for mortgages acquired by Fannie Mae and Freddie Mac (the GSEs) in 2025. In most of the U.S., the 2025 CLL value for one-unit properties will be $806,500, an increase of $39,950 (or 5.2%) from 2024.
Click here for a list of 2025 conforming loan limits for all counties and county-equivalent areas in the U.S., and click here for a map showing the 2025 conforming loan limits across the nation.
Mandated by HERA
The Housing and Economic Recovery Act (HERA) requires that the FHFA adjust the GSEs’ baseline CLL value annually to reflect the change in the average U.S. home price. Earlier today, the FHFA published its Q3 2024 FHFA House Price Index (FHFA HPI) report, which includes statistics for the increase in the average U.S. home value over the last four quarters. According to the report, U.S. house prices increased 5.21%, on average, between the third quarters of 2023 and 2024. Therefore, the baseline CLL in 2025 will increase by the same percentage.
“U.S. house price growth slowed in the third quarter, continuing a trend that started in the fourth quarter of the previous year,” said Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics. “While house prices continued to increase because housing demand outpaced the locked-in housing supply, elevated house prices and mortgage rates likely contributed to the slowdown in price growth.”
In Q3, the FHFA found that the U.S. housing market experienced positive annual appreciation each quarter since the start of 2012. The five states with the highest annual appreciation were:
- Hawaii: 10.4%
- Delaware: 8.5%
- Rhode Island: 8.4%
- Connecticut: 8.2%
- New Jersey: 8.1%
House prices declined in the District of Columbia and Louisiana by 3.1% and 0.4%, respectively.
House prices rose in 91 of the 100 largest metropolitan areas over the previous four quarters, and the annual price increase was the greatest in Miami-Miami Beach-Kendall, Florida at 10.8%. The metropolitan area that experienced the most significant price decline was North Port-Sarasota-Bradenton, Florida at 6.4%.
All nine census divisions had positive house price changes year-over-year. The East North Central Division recorded the strongest appreciation, posting a 6.8% increase from Q3 of 2023 to Q3 of 2024. The West South Central Division recorded the smallest four-quarter appreciation, at 1.6%.
High-Cost Areas
For areas in which 115% of the local median home value exceeds the baseline conforming loan limit value, the applicable loan limit will be higher than the baseline loan limit. HERA establishes the high-cost area limit in those areas as a multiple of the area median home value, while setting the ceiling at 150% of the baseline limit. Median home values generally increased in high-cost areas in 2024, which increased their CLL values. The new ceiling loan limit for one-unit properties will be $1,209,750—150% of $806,500.
“Today’s announcement of loan limit increases, calculated according to statute, enables the FHA program to keep up with nationwide price appreciation,” said Federal Housing Commissioner Julia Gordon. “Regular adjustment of loan limits ensures that FHA financing continues to be available in all markets to all those who rely on our programs to access homeownership.”
Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limits will be $1,209,750 for one-unit properties.
Due to rising home values, the CLL values will be higher in all but six U.S. counties or county equivalents.
