Finance

FHFA just announced higher conforming loan limits for 2025

Published

6 months ago

December 3, 2024

Business Finance News

High housing costs have pushed the CLL up. (iStock )

Housing prices have remained high for the last few years, largely due to fluctuating mortgage rates and lasting economic effects from the pandemic. In response, conforming loan limits (CLL), which determine how big of a loan borrowers are allowed to take out, are set to rise in 2025, the Federal Housing Finance Agency (FHFA) recently announced.

As home prices rise, the FHFA tends to raise the standard CLL. The new limit for 2025 is $806,500 for one-unit mortgages in most states. Borrowers looking to take out a larger loan have to opt for alternative mortgage options like jumbo loans or private loans.

The new limit represents a 5.21% increase from 2024. This increase is on the back of the FHFA House Price Index release, which showed that average U.S. home values increased by the same amount this year.

In areas where 115% of the local median home value exceeds the baseline CLL value, the loan limit will be higher than the baseline.

In places where homes cost 115% more than the usual local price, you can borrow more money than the standard CLL set for most states. The loan limits for one-unit properties in these areas will be $1,209,750 in 2025. Alaska, Hawaii, Guam and the U.S. Virgin Islands all have the higher baseline loan limit for one-unit properties.

If you think you’re ready to shop around for a home loan, consider using Credible to help you easily compare interest rates from multiple lenders in minutes.

INFLATION SEES THE LOWEST ANNUAL RISE SINCE 2021

Mortgage rates had a bumpy year, predictions show a similar 2025

Mortgage rates have been active throughout the year, dropping and surging throughout the last few months. Homebuyers aren’t likely to see much of a difference in 2025.

Zillow predicts slower home value growth, at 2.6%. This change is comparable to this year’s growth. The real-estate giant also predicts easing mortgage rates in the new year but is cautiously optimistic given the fluctuations in 2024 rates.

Although rates are likely to fluctuate throughout the year, it’s not all bad news for the housing market. Buyers may finally gain the upper hand, with more listings likely to hit the market as sellers stop waiting out high mortgage rates.

“Buying a home in 2024 was surprisingly competitive given how high the affordability hurdle became. More inventory should shake loose in 2025, giving buyers a bit more room to breathe,” Zillow Chief Economist Skylar Olsen said.

Affordability will remain a persistent challenge in 2025, but with more homes on the market, buyers will have more leverage during negotiations.

Consumers who want to see what kind of loan term and rates would work for them can take advantage of Credible’s free online tools.

THE FED JUST CUT INTEREST RATES AGAIN, THIS TIME BY A QUARTER OF A PERCENTAGE POINT

The privatization of Fannie Mae, Freddie Mac may result in higher mortgage payments

The mortgage industry may see a significant change during President-elect Donald Trump’s administration. During the last term, Trump attempted to privatize Fannie Mae and Freddie Mac but was unable to do so. This time around, the administration is optimistic that it can finish the task.

It’s difficult to fully predict what the privatization of these two companies – who back about 70% of all U.S. mortgages – would do, but economists have some guesses. Allies of the president-elect have cited stakeholder benefits as a major reason for going private.

Borrowers, however, would likely see a significant shift in their yearly mortgage costs. Economist Mark Zandi estimates an added $1,800 to $2,800 annually to mortgage costs if this privatization goes through.

The additional costs would come from the disruption of the typical system Fannie Mae and Freddie Mac are used to. Rather than issuing loans directly, the two agencies currently purchase loans from lenders and combine them with securities sold to investors.

Should these companies go private, this system would change. Investors may see mortgages as higher-risk investments since they would no longer be backed by the government, ultimately leading to higher borrowing costs for buyers.

If you’re trying to find the right mortgage rate, consider using Credible. You can use Credible’s free online tool to easily compare multiple lenders and check your rates in just a few minutes.

SUPREME COURT BLOCKS PRESIDENT BIDEN’S SAVE PLAN AGAIN

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Finance

Stocks making the biggest moves midday: WBD, MODG, SATS, AAPL

Published

2 hours ago

June 9, 2025

Business Finance News

Finance

Walmart taps own fintech firm for credit cards after Capital One exit

Published

2 hours ago

June 9, 2025

Business Finance News

A Capital One Walmart credit card sign is seen at a store in Mountain View, California, United States on Tuesday, November 19, 2019.

Yichuan Cao | Nurphoto | Getty Images

Walmart‘s majority-owned fintech startup OnePay said Monday it was launching a pair of new credit cards for customers of the world’s biggest retailer.

OnePay is partnering with Synchrony, a major behind-the-scenes player in retail cards, which will issue the cards and handle underwriting decisions starting in the fall, the companies said.

OnePay, which was created by Walmart in 2021 with venture firm Ribbit Capital, will handle the customer experience for the card program through its mobile app.

Walmart had leaned on Capital One as the exclusive provider of its credit cards since 2018, but sued the bank in 2023 so that it could exit the relationship years ahead of schedule. At the time, Capital One accused Walmart of seeking to end its partnership so that it could move transactions to OnePay.

The Walmart card program had 10 million customers and roughly $8.5 billion in loans outstanding last year, when the partnership with Capital One ended, according to Fitch Ratings.

For Walmart and its fintech firm, the arrangement shows that, in seeking to quickly scale up in financial services, OnePay is opting to partner with established players rather than going it alone.

In March, OnePay announced that it was tapping Swedish fintech firm Klarna to handle buy now, pay later loans at the retailer, even after testing its own installment loan program.

One-stop shop

In its quest to become a one-stop shop for Americans underserved by traditional banks, OnePay has methodically built out its offerings, which now include debit cards, high-yield savings accounts and a digital wallet with peer-to-peer payments.

OnePay is rolling out two options: a general-purpose credit card that can be used anywhere Mastercard is accepted and a store card that will only allow Walmart purchases.

Customers whose credit profiles don’t allow them to qualify for the general-purpose card will be offered the store card, according to a person with knowledge of the program.

OnePay didn’t yet disclose the rewards expected with the cards, though the general-purpose card is expected to provide a stronger value, said this person, who declined to be identified speaking ahead of the product’s release. The Synchrony partnership was reported earlier by Bloomberg.

“Our goal with this credit card program is to deliver an experience for consumers that’s transparent, rewarding, and easy to use,” OnePay CEO Omer Ismail said in the Monday release.

“We’re excited to be partnering with Synchrony to launch a program at Walmart that checks each of those boxes and will help serve millions of people,” Ismail said.