Standard mortgage limits are the utmost amount of cash that may be borrowed for a mortgage that’s not 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 traditional mortgage restrict for a single-family dwelling in most areas of the nation is $726,200. In high-cost areas, the restrict is $1,089,300.
Standard mortgage limits are necessary as a result of they decide how a lot cash debtors can qualify for when buying a house. Debtors who exceed the traditional mortgage restrict should acquire a jumbo mortgage, which generally has larger rates of interest and costs.
