In 2024, home price growth remained steady. Housing values increased 5.2% according to the Federal Housing Finance Agency. Because of this conforming loan limits for conventional loans also have increased.
Starting January 1, 2025, the new conforming loan limit will increase to $806,500 for one unit. If you are in high cost areas, the limit increases to $1,209,750. Minnesota will be limited to $806,500 as we are not in a high cost area. Most lenders (including us) have already started using the new limits. Conforming loan limits are for conventional loans backed by Fannie Mae and Freddie Mac.
For those using FHA financing, the new limit for the Minneapolis St Paul metro area will be $529,000 for a one unit home. Outside the metro area, the limit may be lower so make sure you check the area you are looking to buy a home in. Most of the non metro area has a limit of $524,225. FHA limits for 2025 are based on the date the FHA case number is issued and must be on or after January 1, 2025.
For those looking to purchase a 2-4 unit home, the limits are higher for both conventional loans and FHA loans. It will depend on the county for FHA loans, so you will want to check with your lender to verify the mortgage limts.
Are you looking to buy a home over the conventional limits? It is still possible, you will be looking at jumbo loan financing. Still possible but the guidelines may be stricter depending on the price of the home and your down payment. Remember these are mortgage limits, so if you are buying a $1,000,000 home and putting 20% down, you will have a mortgage of $800,000 and be in the conforming loan limits!
Please reach out if you have any questions on mortgage limits in your area! What is so crazy to me is when I started in this business (1992!!), the conforming loan limit was $202,300!! Now it’s over $800,000 – wow!!
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
