UWM Increases Maximum Loan Amounts to Help Borrowers
UWM has made a proactive move to allow brokers to offer larger loan amounts, helping more borrowers avoid high balance or jumbo loans with higher rates and stricter underwriting guidelines. This update raises UWM’s maximum funding above $1 million, with new ceilings including $1,048,500 for two-unit conventional loans, $1,268,000 for three-unit loans, and $1,575,000 for four-unit loans.
Every November, the FHFA sets baseline conforming loan limits that determine the maximum mortgages Fannie Mae and Freddie Mac can purchase. The 2025 limit increased by 5.2%, reflecting slower home price growth compared to previous years.
Raising conforming limits allows more buyers to finance higher-priced homes with conventional loans, addressing affordability challenges. However, it also sparks debate on whether government-backed mortgages should support balances nearing $1 million, a threshold breached in select areas in 2022.
Amid political speculation on loan caps, FHFA Director Bill Pulte confirmed that there are no plans to reduce the conforming loan limit, dispelling rumors of significant changes backed by Fannie Mae and Freddie Mac.
Here is the progression of FHFA’s conforming loan limit for one-unit loans in the lower 48 states since 2016:
- 2016: $417,000
- 2017: $424,100 — 1.7% increase
- 2018: $453,100 — 6.8% increase
- 2019: $484,350 — 6.8% increase
- 2020: $510,400 — 5.3% increase
- 2021: $548,250 — 7.4% increase
- 2022: $647,200 — 18% increase
- 2023: $726,200 — 12.2% increase
- 2024: $766,550 — 5.5% increase
- 2025: $806,500 – 5.2% increase