Out with the Old, In with the New Loan Limits: Exciting Updates for 2025
December 31, 2024
As we say goodbye to 2024 and get ready to welcome a brand-new year, we’ve got some exciting news for homeowners and future buyers: the conforming loan limits for 2025 have been announced! These changes, rolled out by the Federal Housing Finance Agency (FHFA), show how the housing market is continuing to grow and create more opportunities. Let’s dive into the highlights and what they mean for you.
2025 Conforming Loan Limits
The FHFA has bumped up the conforming loan limit to a national baseline of $806,500 for one-unit properties—great news for buyers, and it gets better! If you’re house hunting in a high-cost area, those limits go even higher, capped at 150% of the baseline. Just be sure to double-check your county’s specific loan limits, as they can vary, and some might be lower – don’t worry we are here to help you with this.
What This Means for You: Higher loan limits mean you can borrow more to purchase or refinance your home without needing a jumbo loan. This can translate into easier qualification standards and potentially better interest rates for many borrowers.
2025 FHA Loan Limits
Great news for anyone thinking about using an FHA loan in 2025! On November 26, 2024, the FHA announced new loan limits, and they’ll apply to loans starting January 1, 2025. Here’s a breakdown:
- If You’re Buying in a Low-Cost Area: The maximum amount you can borrow with an FHA loan is set at 65% of the standard loan limit for one-unit properties.
- If You’re Buying in a High-Cost Area: You can borrow more, up to 150% of the standard loan limit.
VA Loan Limits
The Department of Veterans Affairs (VA) hasn’t announced their 2025 loan limits just yet, but they usually follow the same numbers set by the FHFA. We’ll share updates as soon as they’re available!
If you’re a veteran or active-duty service member, this is something to get excited about—it could mean even more flexibility when it comes to buying or refinancing your home. Stay tuned for more details.
2025 RIHousing Loan Limit Increase
Big news from RIHousing: The first mortgage loan limit has been increased to $766,550 for all types of transactions and properties. This applies to Conventional, MRB, and Non-MRB Government programs, giving buyers even more flexibility.
Keep in mind, though, that county-specific loan limits set by FHA, VA, and USDA will still take priority if they’re lower. It’s a great time to explore your options!
Looking Ahead to 2025
With higher loan limits, you can borrow more to buy or refinance your home—without needing a jumbo loan. That’s a big deal because it often means easier qualification requirements and the chance to lock in better interest rates.
The new loan limits highlight just how dynamic the housing market is, offering more opportunities for borrowers nationwide. Whether you’re buying your first home, refinancing, or exploring your options, these increased limits bring more flexibility and make homeownership even more accessible.
If you have questions about how these updates impact your goals, don’t hesitate to reach out.
Wishing You Happy Holidays! As we approach the end of the year, we extend our warmest wishes for a joyful holiday season. Thank you for being part of our journey in 2024. We look forward to serving you in the year ahead!
Categories: Home Loan Information, Loans