Standard mortgage limits are the utmost sum of money that may be borrowed for a mortgage that isn’t backed by the federal government. These limits are set by the Federal Housing Finance Company (FHFA) and are adjusted yearly primarily based on modifications within the housing market. For 2025, the standard mortgage restrict for a single-family residence in most areas of the nation is $726,200. In high-cost areas, the restrict is $1,089,300.
Standard mortgage limits are vital as a result of they decide how a lot cash debtors can qualify for when buying a house. Debtors who exceed the standard mortgage restrict should get hold of a jumbo mortgage, which generally has greater rates of interest and costs.
