Fannie Mae and Freddie Mac to Back Higher Loan Limits in 2025

The Federal Housing Finance Agency raises conforming loan limits by 5.2% to reflect rising home prices, with new caps reaching $806,500 for most areas and over $1.2 million in high-cost regions.

• The Federal Housing Finance Agency (FHFA) announced a 5.2% increase in conforming loan limits for 2025, raising the cap for single-family homes to $806,500 in most areas.
• In high-cost regions where median home values exceed 115% of the baseline, the loan limit will rise to $1,209,750, or 150% of the standard cap.
• The FHFA adjusts these limits annually based on changes in U.S. home prices, which have climbed over 5% in the past year despite a housing market slowdown.
• Fannie Mae and Freddie Mac, which purchase and guarantee loans from lenders, aim to make financing more accessible as high prices and elevated mortgage rates strain affordability.
• Housing experts highlight that while higher loan limits help borrowers, fundamental affordability challenges persist due to limited housing supply and rising costs.

3 Articles

Fox Business Associated Press USA TODAY