These limits also help determine the availability of government-backed mortgages and influence interest rates.

Limits for different areas: Conforming loan limits vary based on geographic location. They are typically based on median home prices and can differ between counties, states, and even regions within a state. Higher-cost areas tend to have higher conforming loan limits. Purpose: Conforming loan limits help ensure liquidity and stability in the mortgage market by setting a standard for mortgage loans that can be bought or guaranteed by the GSEs.