Conforming loan limits: What you need to know

There are many different types of mortgages — fixed-rate, adjustable-rate, 15-year, 30-year, jumbo — and all of these options can leave many homebuyers with spinning heads. But a conforming loan can be particularly attractive because of its less stringent borrowing requirements.

Whether you’re a first-time homebuyer, a repeat buyer or looking to refinance, the simplicity of a conforming loan could be just what you need.

Read more: Take our quiz to learn which mortgage may be right for you.

A conforming loan is a mortgage that meets the borrowing limits set by the Federal Housing Financing Agency (FHFA). These limits are determined according to guidelines defined by the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac). If you’re unfamiliar, Fannie Mae and Freddie Mac are two government-sponsored enterprises that work with lenders nationwide and help facilitate mortgage lending.

A conforming mortgage may be conventional (meaning that it is offered or backed by a private lender or Fannie Mae or Freddie Mac) or non-conventional, which is when your loan doesn’t meet traditional borrowing standards and is secured through the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), for example, instead.

Across the country, most places have one maximum loan amount for conforming loans. In 2024, the maximum conforming limit for a conventional loan for a single-family home is $766,550, an increase of $40,350 from $726,200 in 2023. The baseline limit is higher in Alaska, Guam, Hawaii and the U.S. Virgin Islands: $1,149,825 for a single-family unit.

Note: The above limits are for contiguous states, Washington, D.C. and Puerto Rico.

If you’re pursuing a non-conventional FHA loan, a separate loan limit applies (because these mortgages don’t meet Fannie Mae or Freddie Mac guidelines). Presently, the FHA loan limit for a single-family house is $498,257 for low-cost areas and can be as much as $1,149,825 for high-cost areas of the country. The limit for Alaska, Hawaii, Guam and the U.S. Virgin Islands on a single-family home is $1,724,725. 

The FHFA sets a larger conforming loan limit for areas it determines are high-cost, such as Washington, D.C. and certain counties in California. The ceiling for conforming loans for one-unit homes in these areas increased to $1,149,825 in 2024.

That means if you’re buying a home in Los Angeles County and need a $900,000 mortgage, a conforming loan could still be an option because the amount you want to borrow falls within the conforming loan limit for high-cost areas.

But, if you’re wanting to purchase a townhouse in St. Louis, which isn’t currently considered a high-cost area, and need an $800,000 mortgage, a conforming loan would not be an option because you’d be exceeding the $766,550 baseline loan limit. Instead, you could consider a jumbo mortgage .

Most lenders offer conforming loans, giving you the ability to shop around for the best interest rate. But if you’re purchasing an upscale property or a home in a particularly expensive area, the conforming loan limit might be too low. Understanding the conforming loan limits can help you make the right choice.