Conforming loans must stay under the conforming loan limit, which the Federal Housing Finance Agency adjusts each year. In 2025 the baseline limit is $806,500 for a single-family home in most areas (higher in expensive markets).

Loans that exceed this limit are called jumbo loans and typically have stricter requirements and slightly higher rates.

Conforming loans generally have lower rates than jumbos because lenders can sell them to Fannie/Freddie, freeing up capital to make new loans.