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 adjustments 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 acquire a jumbo mortgage, which usually has increased rates of interest and costs.
