On Nov. 26, FHFA reported conforming loan limit values for 2025.
FHFA set conforming loan limit (CCLs) for mortgages acquired by Fannie and Freddie.
2025 CLL value for 1-unit properties is $806,500, increase of $39,950 from 2024.
Fannie issued Letter LL-2024-03, Confirmation conforming to loan limit values 2025.
National Baseline
Housing and economic recovery act (HERA) (12 USC 4501) required the baseline CLL for enterprises to be adjusted annually to reflect changes in the average home price.
According to the 2024 FHFA House price index (FHFA HPI) house prices increased 5.21%, on average; the baseline CLL in 2025 will increase by the same percentage.
High-Cost Areas
For areas in which 115% of the local median home value exceeds the baseline conforming loan limit, the applicable loan limit will be higher than baseline loan limit.
HERA has established 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 loan limit.
Ceiling loan limit for 1-unit properties will be $1,209,750, which is 150% of $806,500.
Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and US Virgin Islands; the baseline loan limits will be $1,209,750 for 1-unit properties.
Fannie CLLs
First mortgage conforming loan limit values are defined in terms of baseline loan limits and high-cost area loan limits; provided tables containing 2025 conforming loan limits.
All conforming loan limits apply to the original loan amount of the mortgage loan.
2025 limits apply to Desktop Underwriter loan casefiles submitted on or after Dec. 7.
Limits effective for loans delivered into MBS with issue dates on or after Jan. 1, 2025.
Lenders must use special feature code 808 to identify high-balance loans at delivery.
Effectiveness
Loan limits effective for loan delivered to Fannie with issue dates on/after Jan. 1, 2025.
Whole loans delivered through Dec. 31, 2024, must comply with the 2024 limits.
MBS pools with Jan. 1, 2025 pool issue dates required to comply with the 2025 limits.
