As we head into 2025, the Federal Housing Finance Agency (FHFA) has announced another increase in mortgage loan limits. This change expands access to higher-priced homes, making million-dollar properties more attainable for buyers. At Corken + Company Real Estate Group, we’re here to break down what these new loan limits mean and how they impact the Denver Metro market.
What Are the New Mortgage Loan Limits?
The FHFA adjusts mortgage loan limits annually to reflect home price trends. For 2025, the conforming loan limit for a single-family home has increased again, giving buyers more flexibility to finance higher-priced properties without entering the realm of jumbo loans.
• Conforming Loan Limit: The baseline limit is rising to $750,000 in most parts of the U.S., with even higher limits in high-cost areas.
• High-Cost Areas: In select markets, limits can exceed $1 million, making million-dollar homes more accessible with conventional financing.
Why This Matters for Buyers
Higher loan limits are a game changer, especially for buyers looking to purchase in markets like Denver Metro, where home prices have steadily risen over the years.
• Access to Conventional Loans: With increased limits, buyers can finance higher-priced homes with conventional loans, which typically have lower interest rates and more flexible terms than jumbo loans.
• Lower Down Payments: Conventional loans often allow lower down payments compared to jumbo loans, reducing the upfront cost of buying a home.
• More Buying Power: Buyers can now consider properties previously out of reach, including luxury homes in the Denver Metro area.
Why This Matters for Sellers
For sellers, the higher loan limits mean a larger pool of qualified buyers for higher-priced homes.
• Expanded Market for Luxury Properties: Million-dollar homes are now within reach for more buyers, increasing demand for higher-end properties.
• Stronger Pricing Potential: With more buyers able to afford homes in this price range, sellers may have greater leverage in negotiations.
The Impact on the Denver Metro Market
The Denver Metro area is already a desirable market due to its vibrant lifestyle, strong economy, and stunning natural surroundings. With the new loan limits, we expect to see:
• Increased Activity in the Luxury Market: Buyers seeking homes in the $750,000 to $1 million range will benefit most from the new limits, boosting activity in this segment.
• More Opportunities for Upsizing: Current homeowners may find it easier to sell and move into higher-priced homes, stimulating movement across all price points.
How Corken + Company Can Help
Navigating the real estate market under these new loan limits requires expertise. At Corken + Company Real Estate Group, we specialize in helping buyers and sellers make the most of every market shift.
For buyers, we’ll guide you through the financing options available under the new limits and help you find the perfect home. For sellers, we’ll position your property to attract motivated buyers in this dynamic market.
Take Advantage of the New Loan Limits
The higher mortgage loan limits for 2025 are an exciting opportunity for both buyers and sellers in the Denver Metro area. Whether you’re looking to purchase your dream home or sell for top dollar, Corken + Company is here to help you achieve your goals.
Contact us today to learn more about how these changes impact you and to start your real estate journey with confidence. Let’s make 2025 your year for real estate success!
