As we move into 2025, new loan limits have been announced for various mortgage types,
including conventional, jumbo, FHA, and VA loans. These updated limits reflect rising
home prices and provide increased flexibility for borrowers. At Coastline Capital Mortgage,
we’re here to help you understand what these changes mean for your home financing
options.

Let’s dive into the new 2025 loan limits and how they might impact you.

2025 Conventional Loan Limits

Conventional loans, often referred to as conforming loans, adhere to maximum loan
amounts set by the Federal Housing Finance Agency (FHFA). For 2025, these limits have
increased significantly:

• Baseline Loan Limit: The standard conforming loan limit for a one-unit property has
  risen to $806,500, up from $766,550 in 2024.
• High-Cost Area Limit: In high-cost areas, where home values are significantly
  above the national average, the limit is higher, capped at $1,209,750 for one-unit
  properties. This is the maximum amount allowed under FHFA guidelines.

These increases mean more borrowers can take advantage of conventional financing,
avoiding the need for a jumbo loan, which often has stricter requirements and higher
interest rates.

2025 Jumbo Loan Limits

Jumbo loans are for properties that exceed the conforming loan limits set by the FHFA. For
2025:

• Any mortgage exceeding $806,500 in most areas or $1,209,750 in high-cost areas
  will be classified as a jumbo loan.
• Jumbo loans typically require higher credit scores, larger down payments, and may
  have higher interest rates due to the increased risk associated with larger loan
  amounts.

If you’re considering purchasing a high-value home, a jumbo loan might still be the right
choice, and our team can help guide you through the process.

2025 FHA Loan Limits

The Federal Housing Administration (FHA) also announced new limits for its loan program,
which is popular among first-time homebuyers and those with lower credit scores:

• Low-Cost Area (Floor): The minimum FHA loan limit for a one-unit property is
  $524,225, up from $498,257 in 2024.
• High-Cost Area (Ceiling): The maximum limit for high-cost areas is $1,209,750 for a
  one-unit property.
• Special Exception Areas: In areas like Alaska, Hawaii, Guam, and the U.S. Virgin
  Islands, the FHA loan limit for one-unit properties is increased to $1,814,625 to
  account for elevated housing costs.
  FHA loans remain a great option for buyers who need more flexible credit and down
  payment requirements.

2025 VA Loan Limits

The Department of Veterans Affairs (VA) does not set a maximum loan amount but aligns its
guaranty with the FHFA’s conforming loan limits. For eligible veterans:

• Borrowers can technically take out loans that exceed these limits, but loans above
  the conforming thresholds may require a down payment.
• Most lenders follow the conforming loan limits when determining loan terms for VA
  borrowers.
  The VA loan program continues to provide unmatched benefits, such as no down payment
  for eligible service members and veterans, making it a great choice for those who qualify.

What Do These New Limits Mean for You?

The 2025 loan limit increases are good news for borrowers, especially in a market where
home prices continue to rise. Here’s how they might impact your home financing options:

• Increased Affordability: Higher limits allow buyers to finance more expensive
  homes without requiring a jumbo loan, which often has stricter credit and income
  requirements.
• Expanded Opportunities: With higher FHA limits, first-time homebuyers and those
  with less-than-perfect credit can access more financing options.
• Flexibility for Veterans: VA loan borrowers can enjoy more flexibility in purchasing
  homes in high-cost areas.

How Coastline Capital Mortgage Can Help

Understanding these new loan limits and how they affect your mortgage options is key to
making informed decisions. Whether you’re looking to purchase a home, refinance, or
simply explore your options, Coastline Capital Mortgage is here to guide you every step of
the way.

If you have questions about these new limits or want to discuss which loan type is best for
you, don’t hesitate to reach out. Our team of experts is ready to help you navigate the 2025
mortgage landscape with confidence.