The Federal Housing Finance Agency, or FHFA for short, sets conforming loan amounts each year. These are for a mortgage that meets the guidelines set by Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs) that fund most mortgages in the United States. Conforming loans are the most popular type of mortgage because they are often cheaper than other types of mortgages. The great thing about these loans is that you can have a credit score as low as 620 and can put down as little as 3 percent if you have good credit. This helps many buyers get into a home. The negative is that if you don't put down at least 20 percent you will have to pay mortgage insurance which is also called "PMI." PMI can be from about $.58% to $1.86% of the original loan amount. This is a monthly amount you pay until you hit 20% of equity.
Here are the new conforming loan amounts for 2025.
Single Unit increased from $766,550 to $802,650 in most states (including California.)
Two Unit increased from $981,500 to $1,027,750.
Three Unit increased from $1,186,350 to $1,242,250
Four Unit increased from $1,474,400 to $1,543,900.
