Fannie Mae just raised the conforming loan limit to $832,750—and for Houston home buyers shopping in higher price ranges, this change is a big deal.

While it may sound like inside-baseball mortgage news, this update can directly lower monthly payments, reduce financing hurdles, and expand buying power—especially for buyers who previously landed in jumbo loan territory.

Let’s break down what changed, why it matters in the Houston real estate market, and how buyers can take advantage of it.

What Is the New Conforming Loan Limit in 2025?

Fannie Mae increased the national conforming loan limit to $832,750, a meaningful jump from prior years. This means more buyers can now qualify for conforming loans instead of jumbo loans, even when purchasing higher-priced homes.

In a market like Houston—where many desirable neighborhoods sit just below or above previous loan limits—this change opens doors that were previously more expensive to enter.

A Real Houston Buyer Example

Let’s look at a common scenario:

• Purchase price: $900,000
  
  

• Down payment: 10% ($90,000)
  
  

• Loan amount: $810,000
  
  

That $810,000 loan amount now falls well under the new conforming loan limit.

Previously, this loan would have been classified as a jumbo loan. Today, it qualifies as a conforming loan—and that distinction matters.

Conforming Loan vs. Jumbo Loan: What’s the Difference?

While both loan types can get you into a home, they’re not created equal.

Jumbo loans typically come with:

• Higher interest rates
  
  

• Stricter underwriting guidelines
  
  

• Larger required cash reserves
  
  

• Less flexibility overall
  
  

Conforming loans generally offer:

• Lower interest rates
  
  

• Easier approval standards
  
  

• More competitive long-term affordability
  
  

How Much Can Houston Buyers Actually Save?

Using simplified interest rate examples:

• Jumbo loan rate: 7%
  
  

• Conforming loan rate: 6%
  
  

On an $810,000 loan:

• Jumbo loan payment (7%): approx. $5,386/month
  
  

• Conforming loan payment (6%): approx. $4,855/month
  
  

That’s a monthly savings of approximately $531.

Same home. Same buyer. Different loan category—purely because of the new conforming loan limit.

Why This Matters in the Houston Real Estate Market

Houston’s housing market includes a wide range of price points, and many buyers sit right at the threshold where financing structure makes a significant difference.

If higher monthly payments previously caused you to:

• Pause your home search
  
  

• Rule out certain neighborhoods
  
  

• Step back from the higher-end market
  
  

…it may be time to re-evaluate.

This loan limit increase gives buyers more purchasing power, lower monthly payments, and more flexibility—without changing the home they want.

This Isn’t Just Mortgage News—It’s a Strategy Shift

Financing structure matters just as much as purchase price. Two buyers can buy the same Houston home at the same price and end up with very different long-term costs depending on how the loan is structured.

That’s why working with experienced local professionals is critical.

At The Bly Team, we help buyers understand how pricing, financing, and market conditions work together—so you’re not overpaying, overextending, or missing opportunities hidden in the details.

Bottom Line for Houston & League City Buyers

Fannie Mae’s increase to the conforming loan limit is one of those rare changes that quietly creates real opportunity.

If high monthly payments pushed you out of the market—or made you rethink what you could afford—this update could bring you back into play with stronger numbers and better terms.

If you’d like to see how this change impacts your specific price range or buying strategy, reach out to The Bly Team. A short conversation can reveal whether this shift works in your favor.

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Houston Buyers: New Conforming Loan Limit Could Save You $500+ a Month | Bly Team

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Fannie Mae raised the conforming loan limit to $832,750. Learn how Houston home buyers can save hundreds per month and gain more buying power with this change.

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