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For 2025, the Federal Housing Finance Agency (FHFA) has announced new loan limits that borrowers can finance under conventional mortgages eligible to purchase by Fannie Mae and Freddie Mac. 

Why do these limits matter? 

• Buyers within the conforming limits can secure more favorable terms such as lower interest rates because these loans are backed by Fannie Mae and Freddie Mac.  Lower rates also make the loan more affordable over time. 
• Easier qualification standards which can be beneficial for first-time buyers or those with moderate income. 
• Smaller down payment requirements often as low as 3% to 5% compared to 10% or more for Jumbo loans. 
• Buyers exceeding the conforming loan limits also called Jumbo loans typically come with stricter requirements and higher down payments. 
• As home prices continue to rise such as in Seattle, the higher loan limits provide more opportunities for buyers to purchase properties in competitive markets who previously couldn't secure financing for higher-priced homes.  

With higher Conforming loan limits, borrowers can access financing that is not only more affordable but also attainable for a wider range of potential homeowners. Stay in touch and work with your local mortgage broker to provide valuable resource for both you and your clients. For county by county loan limits here in Washington state - please preview it here and check your current market rates here.