UWM raises conforming loan limit to $819,000

"This proactive move allows brokers to offer larger loan amounts, enabling more borrowers to avoid moving into high balance or jumbo loans, which typically come with higher rates and stricter underwriting guidelines, the company said in a statement. The update pushes UWM's maximum funding above $1 million. New ceilings include: $1,048,500 for two-unit conventional loans (increased from $1,032,650); $1,268,000 for three-unit conventional loans (increased from $1,248,150); and $1,575,000 four-unit conventional loans (increased from $1,551,250)."

"Each November, the FHFA sets baseline conforming loan limits that dictate the maximum size of mortgages Fannie Mae and Freddie Mac can purchase. For 2025, the limit rose 5.2%, a smaller gain compared to the 5.5% increase in 2024, reflecting slower home price growth. Raising conforming limits allows more buyers to finance higher-priced homes with conventional loansan important lever as affordability challenges persist."

"But it also reignites debate over whether government-backed mortgages should support balances approaching $1 million, a threshold first breached in select areas in 2022. The move comes amid renewed political attention to loan caps. There had been speculation that the Trump administration might push to cut conforming loan limits as part of a broader effort to shrink the footprint of the government-sponsored enterprises. But FHFA Director Bill Pulte dismissed that idea in March."

UWM increased maximum funding above $1 million, allowing brokers to offer larger loans so more borrowers can avoid high-balance or jumbo loans with higher rates and stricter underwriting. New ceilings are $1,048,500 for two-unit, $1,268,000 for three-unit, and $1,575,000 for four-unit conventional loans. The FHFA sets baseline conforming loan limits each November that determine the maximum mortgages Fannie Mae and Freddie Mac can purchase. For 2025, the conforming limit rose 5.2%, reflecting slower home price growth than the prior year's 5.5% increase. Raising conforming limits allows more buyers to finance higher-priced homes with conventional loans, but reignites debate over government-backed mortgages near $1 million amid political scrutiny.

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