Conforming Loans with a 3% Down Payment
*Conforming Loan with a 3% Down Payment (620 FICO score needed)
*95% Loan to Value with NO Private Mortgage Insurance (Lender Paid)
*Fannie Mae HomeReady Income Limit
*Freddie Mac Home Possible Income Limit
2025 LOAN LIMITS NOW ALLOWED ON CONVENTIONAL PRODUCTS
Conventional – Loans closed on or after Jan 1st 2025:
The Federal Housing Finance Agency (FHFA) has issued the following maximum first mortgage loan limits that will apply to conventional loans for acquisition by Fannie Mae / Freddie Mac with a note date on and after January 1, 2025.
Units |
Conforming Amount |
High Cost Areas |
One |
$806,500 |
$1,209,750 |
Two |
$1,032.650 |
$1,548,975 |
Three |
$1,248,150 |
$1,872,225 |
Four |
$1,551,250 |
$2,326,875 |
Conforming loans are conventional loans that meet bank-funding criteria set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). Both of these stock-holding companies buy mortgage loans from lending institutions and secure them for resale to the investment community. Every year, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price. Buying back mortgage loans allow these agencies to provide a continuous flow of affordable funding to banks that reinvest their money back into more mortgage loans. Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market – effectively decreasing the demand for non-conforming loans.