November 26, 2024

FHFA: Conforming Loan Limit Values for 2025 Announced for Fannie Mae and Freddie Mac

The baseline CLL value of $806,500 for one-unit mortgages purchased by the Enterprises represents a 5.2 percent increase from 2024

The Federal Housing Finance Agency (FHFA) today announced the conforming loan limit values (CLLs) for mortgages acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2025.  In most of the United States, the 2025 CLL value for one-unit properties will be $806,500, an increase of $39,950 (or 5.2 percent) from 2024.  

National Baseline

The Housing and Economic Recovery Act (HERA) requires FHFA to adjust the Enterprises’ baseline CLL value each year to reflect the change in the average U.S. home price.  Earlier today, FHFA published its third quarter 2024 FHFA House Price Index® (FHFA HPI) report, which includes statistics for the increase in the average U.S. home value over the last four quarters.  According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 5.21 percent, on average, between the third quarters of 2023 and 2024.  Therefore, the baseline CLL in 2025 will increase by the same percentage.  

High-Cost Areas 

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit value, the applicable loan limit will be higher than the baseline loan limit.  HERA establishes the high-cost area limit in those areas as a multiple of the area median home value, while setting the ceiling at 150 percent of the baseline limit.  Median home values generally increased in high-cost areas in 2024, which increased their CLL values.  The new ceiling loan limit for one-unit properties will be $1,209,750, which is 150 percent of $806,500.  

Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands.  In these areas, the baseline loan limits will be $1,209,750 for one-unit properties.  

Due to rising home values, the CLL values will be higher in all but six U.S. counties or county equivalents.   

Other Resources

This post was originally published here.