What is the FHFA conforming loan limit?

Q: What is the FHFA conforming loan limit?

The 2025 FHFA conforming loan limit is $806,500 in standard areas and $1,209,750 in designated high-cost areas (typically 150% of the standard limit). The limit is adjusted annually based on the FHFA House Price Index. The Federal Housing Finance Agency (FHFA) sets annual conforming-loan limits each November for the following year. The limit determines the maximum mortgage size Fannie Mae and Freddie Mac can purchase. 2025 limits Baseline (one-unit primary residence): $806,500 High-cost areas: $1,209,750 (150% of baseline) Two-unit properties: $1,032,650 Three-unit: $1,248,150 Four-unit: $1,551,250 Recent baseline limits 2025: $806,500 2024: $766,550 2023: $726,200 2022: $647,200 2021: $548,250 2020: $510,400 How the limit is calculated FHFA increases the baseline limit annually based on the FHFA House Price Index (HPI) seasonally-adjusted change for the previous Q3-to-Q3 period. The 2025 limit reflects a 5.2% increase over 2024 — the third consecutive year of meaningful limit increases driven by elevated home-price appreciation. The high-cost area definition FHFA designates a county "high-cost" when the area median home price exceeds 115% of the national baseline limit. As of 2025, approximately 230 U.S. counties qualify — including most of California's coastal counties, the New York metro, Hawaii, Washington DC, and parts of New England. Buyers in these areas can finance up to $1,209,750 with a Fannie/Freddie-purchasable conforming loan.

Question

Short answer. The 2025 FHFA conforming loan limit is $806,500 in standard areas and $1,209,750 in designated high-cost areas (typically 150% of the standard limit). The limit is adjusted annually based on the FHFA House Price Index.

The Federal Housing Finance Agency (FHFA) sets annual conforming-loan limits each November for the following year. The limit determines the maximum mortgage size Fannie Mae and Freddie Mac can purchase.

2025 limits

Baseline (one-unit primary residence): $806,500
High-cost areas: $1,209,750 (150% of baseline)
Two-unit properties: $1,032,650
Three-unit: $1,248,150
Four-unit: $1,551,250

Recent baseline limits

2025: $806,500
2024: $766,550
2023: $726,200
2022: $647,200
2021: $548,250
2020: $510,400

How the limit is calculated

FHFA increases the baseline limit annually based on the FHFA House Price Index (HPI) seasonally-adjusted change for the previous Q3-to-Q3 period. The 2025 limit reflects a 5.2% increase over 2024 — the third consecutive year of meaningful limit increases driven by elevated home-price appreciation.

The high-cost area definition

FHFA designates a county "high-cost" when the area median home price exceeds 115% of the national baseline limit. As of 2025, approximately 230 U.S. counties qualify — including most of California's coastal counties, the New York metro, Hawaii, Washington DC, and parts of New England. Buyers in these areas can finance up to $1,209,750 with a Fannie/Freddie-purchasable conforming loan.

Sources

U.S. Census Bureau Survey of Construction; National Association of Realtors Existing Home Sales report; Freddie Mac Primary Mortgage Market Survey; National Bureau of Economic Research Business Cycle Dating Committee.