Loan limits

Conventional (conforming) loan limits

Conforming loan limits define the largest loan sizes eligible for purchase by Fannie Mae and Freddie Mac. Limits are set by the FHFA and can differ by county. Loans above the applicable limit are typically classified as jumbo.

Who this may fit

Anyone shopping in a market where price levels approach or exceed the standard conforming limit, or purchasing in a high-cost county.

Key decision factors

  • Whether the loan amount falls within the county's conforming limit
  • Whether a high-balance / high-cost county limit applies
  • How pricing changes across conforming, high-balance, and jumbo

Illustrative example

Common mistakes

  • Assuming national headlines about loan limits apply to every county
  • Missing high-balance thresholds in high-cost areas
  • Ignoring how splitting into two loans changes pricing and complexity

Questions to ask a licensed loan officer

  • What is the applicable conforming limit for my county this year?
  • How does pricing change if I go conforming vs high-balance vs jumbo?
  • Are there structural options (second lien, larger down payment) that keep me in conforming?

Sources

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