The Federal Housing Finance Agency (FHFA) has announced the new conforming loan limits for 2025, and the numbers reflect the ongoing appreciation of home values across the nation, including here in Santa Barbara County. Understanding these limits is essential for both homebuyers and homeowners looking to refinance. Let’s break down what these changes mean for you.

What Are Conforming Loan Limits?

Conforming loan limits determine the maximum loan size eligible for purchase by Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that play a significant role in the mortgage market. Loans within these limits typically offer lower interest rates and easier qualification standards compared to non-conforming or jumbo loans.

2025 Updates: Key Figures

For 2025, the baseline conforming loan limit for one-unit properties across most of the U.S. has increased to $806,500, up from $766,550 in 2024. In Santa Barbara County the maximum loan amount for a conforming loan for a single-family home is now $937,500. The maximum conforming loan amount for a duplex is $1,168,950, a triplex is $1,413,000 and a fourplex is
$1,756,000.

This adjustment reflects a rising housing market, making it easier for buyers to finance homes in
competitive markets without entering jumbo loan territory.

Why Does This Matter?

Affordable Financing Options: Conforming loans typically come with better interest
rates compared to jumbo loans, potentially saving you thousands over the life of your
loan.

Affordable Financing Options: Conforming loans typically come with better interest
rates compared to jumbo loans, potentially saving you thousands over the life of your
loan.

1. Affordable Financing Options: Conforming loans typically come with better interest
   rates compared to jumbo loans, potentially saving you thousands over the life of your
   loan.
2. Easier Qualification: Conforming loans have less stringent credit and income
   requirements compared to jumbo loans.
3. Support for Refinancing: Homeowners with existing loans can refinance within these
   limits to secure lower rates or better terms.

Impacts for Santa Barbara County

With our median home prices often exceeding national averages, the higher loan limits are a welcome relief for buyers and investors. It opens the door for more people to take advantage of the benefits offered by conforming loans, especially in markets like Santa Barbara, Goleta, and Montecito, where prices continue to remain strong.

Is a Conforming Loan Right for You?

If you’re considering purchasing a home or refinancing in 2025, now is a great time to explore your options under the new limits. As a loan officer specializing in Santa Barbara County, I can help you understand how these changes apply to your unique situation. Whether you’re buying your first home, upgrading, or looking for a second property, we’ll find the right financing strategy for you.

Ready to explore your loan options for 2025? Contact me today to get started!