FHFA Announces New Loan Limits for 2025
Happy New Year! Just in time for 2025, the Federal Housing Finance Agency has announced new limits for standard and high-balance conforming loans. Are you curious about what this means for you? Here, I share insights:
New Year, New Loan Limits
Each year, the Federal Housing Finance Agency (FHFA) evaluates the conforming loan limit values (CLLs) for mortgages acquired by Fannie and Freddie. This is required by the Housing and Economic Recovery Act (HERA) to reflect changes in the average home price. FHFA recently released its third quarter of 2024 FHFA House Price Index report, which shows that home prices increased at an average of 5.21 percent between the third quarters of 2023 and 2024. Per this increase, FHFA has announced that conforming loan limits will follow suit by the same percentage for 2025.
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What This Means For Buyers
If you’re considering buying a house, you should know that the standard conforming loan limit for one-unit dwellings has increased to $806,500 (up from $766,550).
High-balance loans are available in areas with more expensive housing (such as Boulder and Denver). These are still considered conforming loans, but they have a higher limit to meet the local market's needs better. The FHFA sets the limit at 150% of the baseline in these areas. The new high-balance ceiling for single-unit properties has increased to $1,209,750 this year, up from $1,149,825, but it varies by county.
In Boulder, the new high-balance loan limit is $862,500. In Denver, the ceiling is $833,750. If you’re putting 5% down in Boulder, you could purchase a home up to $907,900. With 5% down in Denver, your purchasing power would be $877,635.
The new conforming loan limits are great news if you're considering purchasing a home! With more spending power, you’ll have a better chance of landing your dream home. Are you ready to talk financing? I’d love to help! Please contact me to start the process. You can reach me via email at michaela@michaelaphillips.com or by phone at 303.579.5517.