Last updated: August 2025
Conventional Loan Limits in Texas: Why They Matter in 2025
If you’re buying a home in Texas with a conventional mortgage, knowing the 2025 conventional loan limits in Texas can help you plan smarter — and avoid extra costs.
Whether you’re upgrading, downsizing, or buying your first place, these limits determine the maximum loan amount before your mortgage becomes a jumbo loan, which can mean higher rates, bigger down payments, and stricter requirements.
This guide breaks down the Texas loan limits for conventional mortgages, how they affect your purchasing power, and strategies to stay within them.
What Is a Conventional Loan Limit?
A conventional loan limit is the maximum amount you can borrow using a conforming loan backed by Fannie Mae or Freddie Mac. These limits are updated annually by the Federal Housing Finance Agency (FHFA) based on changes in national home prices.
If your mortgage is at or below the limit:
- You may qualify for lower interest rates
- You can often make a smaller down payment
- You face fewer documentation and reserve requirements
If your loan exceeds the limit, it’s considered a jumbo loan — requiring stronger credit, higher down payments, and more detailed income verification.
2025 Conventional Loan Limits in Texas by Property Type
In 2025, the baseline Texas conventional loan limit for a one-unit home is $806,500. Texas has no FHFA-designated “high-cost” counties, so this number applies statewide.
| Property Type | 2025 Loan Limit |
|---|---|
| 1-unit | $806,500 |
| 2-unit | $1,032,650 |
| 3-unit | $1,248,150 |
| 4-unit | $1,551,250 |
Multi-unit limits can be a huge advantage if you’re looking to house hack — living in one unit while renting the others can help you build equity faster while keeping your financing within conforming guidelines.
How Conventional Loan Limits Affect Your Texas Homebuying Budget
Loan limits don’t cap your home’s price — they cap the loan amount. You can buy a property worth more than $806,500 if your down payment is large enough to keep the loan under the cap.
Benefits of staying under the limit:
- Lower rates in many cases
- Faster and simpler approval
- Down payments as low as 3% (for qualified buyers)
What happens if you go over:
- Jumbo loan rules kick in
- You may need 10–20% down
- Lenders may require higher credit scores and more reserves
Strategies to Stay Under the 2025 Conventional Loan Limit in Texas
If you’ve found your dream home but the price pushes your loan over the limit, you can:
- Increase your down payment to reduce the loan amount
- Use a piggyback loan (e.g., 80-10-10) to split financing
- Target slightly lower-priced homes or those needing cosmetic updates
- Negotiate with the seller to bring your financed amount under the cap
Options When You Need More Than the Texas Loan Limit
If your budget or goals require financing above the limit, options include:
- Jumbo loans: For amounts over the conforming limit, with stricter requirements
- VA loans: If you’re a veteran or active-duty service member, you can often borrow more with no down payment and no PMI — Salute Mortgage specializes in helping you maximize your VA benefits
- FHA loans: Lower down payment requirements and flexible credit guidelines
- DSCR loans: For investors, approval is based on the property’s income, not personal tax returns
Why Texas Homebuyers Choose Salute Mortgage
At Salute Mortgage, we know the Texas lending landscape — from booming metros like Austin and Dallas to small-town and rural properties. We offer:
- Clear guidance on your borrowing power
- Fast pre-approvals so you can make offers with confidence
- Flexible loan options beyond conventional, including VA, FHA, and investor programs
We combine national lending strength with the personal service of a hometown advisor, so you never feel lost in the process.
FAQs About Conventional Loan Limits in Texas (2025)
In 2025, the baseline conventional loan limit in Texas for a one-unit property is $806,500. This limit applies statewide because Texas does not have FHFA-designated high-cost counties.
No. The limit applies to the loan amount, not the purchase price. You can buy a home for more than $806,500 as long as your down payment keeps your loan amount at or below the limit.
If your loan amount exceeds $806,500, it becomes a jumbo loan. Jumbo loans usually have stricter credit, income, and down payment requirements than conventional conforming loans.
Yes. In 2025, the limits are $1,032,650 for a two-unit property, $1,248,150 for a three-unit property, and $1,551,250 for a four-unit property.
Yes. If you qualify for a VA loan, you may be able to borrow more than the conventional limit with no down payment and no PMI. Salute Mortgage specializes in helping veterans and active-duty service members maximize these benefits.
The Bottom Line on Conventional Loan Limits in Texas (2025)
The 2025 conventional loan limits in Texas give most buyers a generous ceiling—especially if you know how to structure your financing.
Staying under the limit can mean faster approval, better terms, and less financial stress.
Even if you’re close to the cap, a few small adjustments can keep you in conforming territory — and if you do need to go higher, we’ll guide you through your jumbo or alternative financing options with the same clarity and speed.
Ready to find out your 2025 borrowing power?
Get a quick, personalized quote today—no obligation, no jargon, just clear numbers you can count on.
