Loan Limits: How Much Can You Borrow in 2025?

If you’re thinking about buying a house in 2025, you’ve probably come across the term “loan limits” while researching different mortgage loans. A loan limit is the max amount you can borrow with certain mortgages, and we like to think of it as how much buying power you have.

So how much buying power do you have in 2025? We’ll break down the basics of loan limits and how much you can borrow with conforming, jumbo, FHA, VA and USDA financing.

What is a Loan Limit and Why Does It Matter?

A loan limit is the maximum amount of funds you can borrow for a particular loan program. Loan limits vary based on the type of loan, whether the loan is conforming or non-conforming, geography and more.

Why Are There Loan Limits?

Loan limits might sound like a boring technical detail, but they’re actually a big deal and they affect all of us in some way. The loan limit exists to keep things from getting out of hand, both for you and the lender.

They keep things fair, manageable and stable for borrowers, lenders and the economy as a whole. Loan limits allow borrowers to access funds for what they need to move forward – without letting the whole system tip over for everyone else.

Understanding Conforming Loan Limits

Conforming loans follow the borrowing limits set forth by the Federal Housing and the funding criteria of Freddie Mac and Fannie Mae, two government sponsored enterprises. Conforming loans are capped each year with a loan limit that is determined based on the current state of home prices.

What is a Conforming Fixed Loan?

A conforming fixed loan is a mortgage that meets the guidelines set by Fannie Mae and Freddie Mac. The “fixed” part means the interest rate stays the same for the whole loan term, giving you predictable payments unlike an adjustable-rate mortgage. These types of loans generally are less risky for lenders, making them a stable and budget-friendly option if your loan amount fits within the conforming loan limits.

Conforming Loan Limits for 2025

Every November, the Federal Housing Finance Agency (FHFA) announces an annual limit for the upcoming year as required by the Housing and Economic Recovery Act (HERA) of 2008. The FHFA does this annually to ensure the conforming loan limit accurately reflects average U.S. home prices.

The limit is set each year for each county with most counties assigned the baseline conforming loan limit, but the limit is raised or lowered based on economic differences.

What Is the Conforming Loan Limit for 2025?

In 2025, the conforming loan limit for one-unit properties in most counties is $806,500, up $39,950 from 2024.

Alaska, Hawaii, Guam and the U.S. Virgin Islands have their own baseline conforming loan limit of $1,209,750.

In high-cost areas, the FHFA allows for a higher loan limit of $1,209,750 in 2025.

How Do You Know if You Are in a High-Cost Area?

High-cost areas refer to a location where 115 percent of the local median home value surpasses the baseline conforming loan limit. High-cost area loan limits are capped at 150% of the baseline limit.

Fannie Mae indicates that high-cost areas can be found in California, Colorado, Connecticut, District of Columbia, Florida, Idaho, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Tennessee, Utah, Virginia, Washington, West Virginia and Wyoming.

You can view the conforming loan limit for your county and determine if your area qualifies as high-cost using Fannie’s Mae’s Area Median Income Lookup Tool.

 

What Does an Increase in the Conforming Loan Limit Mean for You?

Overall, the conforming loan limit increased in 2025 for all but six U.S. counties/county equivalents. For homebuyers, this is good news – with an increase in home prices, you now have more buying power.

If you want take advantage of our conforming loan’s standard eligibility, competitive pricing and affordable features, we can review your unique scenario to help you determine what type of conforming loan is right for you.

Finding the Maximum Conforming Loan Amount in Your Area

How to Check Loan Limits By County

You can easily find out the 2025 conforming loan limit for your county or county equivalent using Fannie’s Mae’s Area Median Income Lookup Tool. You’ll be able to zoom in on your state and select your county to view the area median income and the conforming loan limits for dwellings with one to four units.

Non-Conforming Loan Limits

If conforming loans don’t fit your financial needs, we offer non-conforming loans to help you secure financing. Non-conforming loans don’t follow Fannie Mae and Freddie Mac guidelines or the conforming loan limit.

A loan might be considered non-conforming not just if it surpasses the conforming loan limit, but also if a borrower’s credit score or debt-to-income ratio doesn’t meet the qualifying guidelines or the loan has non-conventional terms.

The most common kind of non-conforming loans is a jumbo loan, but government-backed loans like FHA loans, VA Loans and USDA loans are also considered non-conforming as they can’t be purchased by Fannie Mae or Freddie Mac.

Jumbo Loan Limits for 2025

Jumbo loans are for buyers who need a larger loan than what a conforming loan can offer. In 2025, that means that you’d need financing that exceeds $806,500 in most counties or $1,209,750 in high-cost areas.

Since jumbo loans are not guaranteed by Fannie Mae or Freddie Mac and carry more risk, credit requirements might be more stringent than for a conforming loan.

However, with Premier Mortgage Associates, we offer fixed-rate jumbo loan amounts up to $10 million and higher in some cases to qualified borrowers.

To see how much you can borrow with our jumbo loans, we offer fast and simple preapprovals.

FHA Loan Limits for 2025

FHA loans are backed by the Federal Housing Administration (FHA), allowing FHA-approved lenders to offer financing to borrowers who might not otherwise qualify. FHA financing doesn’t require a large down payment, making it a great loan option for homebuyers with lower credit scores or limited savings.

The FHA sets its own loan limits every year that differ based on the county you’d like to purchase in and the type of property. The FHA accounts for geography as well as the conforming loan limit when determining the FHA loan limit.

Counties that are in low-cost areas have a lower limit, with the loan limit typically set a 65% of the conforming loan limit. High-cost areas,determined by the income levels, cost of construction and demand for housing, typically are capped at 150% of the conforming loan limit. Counties can fall between the “floor” and “ceiling” of FHA loan limits, so when that happens, the one-unit FHA loan limit is 115% of the local median home prices.

To determine the FHA loan limit for your specific county, you can access the lookup tool from the U.S. Department of Housing and Urban Development.

If FHA financing sounds like an ideal option for you, get in touch with one of our experienced Loan Officers who will review your FHA options and find the best financing for your family’s unique situation.

VA Max Loan Amount and VA Jumbo Loan Limits for 2025

A VA Loan is federally sponsored by the Veterans Administration for the purpose of helping veterans and active service members become homeowners. VA Loans require no down payment, typically have limited closing costs and are a lifetime benefit for veterans and active service members, meaning it can be used multiple times.

For Veterans and active-duty military personnel using a VA loan, it’s important to be aware of the jumbo loan limits and loan maximum when budgeting for a home purchase. If you’re completely eligible, that is, you haven’t used your VA benefit or paid off previous VA loans, there’s no set loan limit.

Since 2020, the VA guarantees 25% of any loan amount your lender approves, even for loans exceeding $2 million, often with no down payment required. Eligible veterans, service members and survivors with full entitlement don’t have a purchasing limit on loans over $144,000.

However, if your entitlement is reduced due to prior VA loan use, you’re limited to the county conforming loan limit. If you exceed the threshold, your loan becomes classified as a VA jumbo loan.

VA Loan Limits by State: Key Differences

For those with remaining entitlement rather than full entitlement, VA loan limits vary by county and state since they follow the conforming loan limits of the FHFA. For example, purchasing a home in a wealthy county such as Orange County allows you to borrow up to $1,209,750 without a down payment, if you’re completely eligible. With a lower-cost area such a rural Kentucky, you’re capped at $806,500 unless you can cover the overage. It is important to check your county’s specific limit because it directly affects the home price you can target when using a VA loan.

USDA Loan Limits for 2025

USDA Loans are sponsored by the United States Department of Agriculture and are designed to help low- and moderate-income families pursue homeownership in rural areas. USDA Loans require no down payment and are beneficial for low-income homebuyers in rural or suburban areas.

USDA loan limits in 2025 vary by county and state, with many lower-cost areas capped at $419,300 and up to $970,800 in high-cost areas like Santa Cruz County in California.

However, it’s important to note that not all counties are eligible for a USDA loan, so be sure to review the eligibility and 2025 USDA loan limit for your county.

Find Out Your Buying Power in 2025

Whether you are a prime candidate for a conforming loan or you might be eligible for a VA, USDA, FHA or jumbo loan, we can help you determine your buying power. Our knowledgeable Loan Officers will review your specific scenario and match you with the loan program that best suits your needs.

Get started today by contacting one of our Loan Officers or getting preapproved.