Each year, the Federal Housing Finance Agency (FHFA) updates the conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac. These limits shape how much buyers can borrow without crossing into “jumbo loan” territory. For 2026, the FHFA increased these limits again, reflecting steady growth in home prices across the country.
If you’re planning to buy, sell, or refinance in 2026, understanding these new limits can help you make smarter decisions. Here’s a clear, beginner-friendly breakdown of what changed, why it matters, and how it impacts you.
Conforming loan limits set the maximum mortgage amount that Fannie Mae and Freddie Mac will purchase from lenders. Because these loans are supported by large federal agencies, they typically come with better interest rates, easier approval, and more flexible terms than jumbo loans.
These limits act as financial guardrails for lenders and provide stability in the mortgage market.
A conforming loan is a mortgage that meets the guidelines set by Fannie Mae and Freddie Mac—including staying at or below the conforming loan limit for its county. Conforming loans generally offer:
Lower interest rates
Lower down payment options
More flexible credit and income requirements
Faster approval and underwriting
These loans are popular for first-time buyers and for anyone looking for predictable, cost-effective financing.
A jumbo loan is any mortgage above the conforming loan limit for its county.
Because jumbo loans are not backed by Fannie Mae or Freddie Mac, lenders take on more risk. As a result, jumbo loans usually require:
Higher credit scores
Larger down payments (10–20% or more)
Stricter income and asset documentation
More cash reserves
Sometimes higher interest rates
A jumbo loan may be necessary if you purchase a home priced above the local conforming limit, such as in luxury markets or expensive metro areas.
| Feature | Conforming Loan | Jumbo Loan |
|---|---|---|
| Backed by Fannie Mae / Freddie Mac | ✔ Yes | ✘ No |
| Loan amount | At/below conforming limit | Above conforming limit |
| Interest rates | Generally lower | Higher in some cases |
| Down payment | 3–5% may be allowed | Usually 10–20%+ |
| Credit score | More flexible | Higher required |
| Approval process | Faster, easier | Stricter |
| Best for | Most homebuyers; first-timers | High-price or luxury homes |
Understanding this difference helps you decide the best financing path for your goals.
The FHFA adjusts conforming loan limits annually based on home price data, especially the House Price Index, which tracks national appreciation. When prices rise, the FHFA raises limits so buyers aren’t forced into jumbo loans simply because of inflation.
For 2026, both the baseline limit and high-cost area limits increased due to market growth.
The 2026 baseline loan limit for a 1-unit home is $832,750, up from $806,500 in 2025.
Any loan above this amount becomes a jumbo loan unless the property is in a designated high-cost area.
Some U.S. counties—like NYC, San Francisco, and LA—have significantly higher housing costs. These areas qualify for expanded conforming limits up to 150% of the baseline.
Here are the 2026 high-cost limits:
| Units | 2026 High-Cost Limit |
|---|---|
| 1-unit | $1,249,125 |
| 2-unit | $1,599,375 |
| 3-unit | $1,933,200 |
| 4-unit | $2,402,625 |
These higher limits are especially helpful for buyers considering multifamily homes or larger properties in expensive markets.
Because housing prices in these areas are uniquely high, the FHFA assigns a separate baseline:
1-unit baseline: $1,249,125
High-cost ceiling: $1,873,675
With higher limits, buyers can borrow more without needing a jumbo loan, which has stricter requirements.
Conforming loans usually offer lower interest rates because they’re backed by Fannie and Freddie.
Homeowners previously in jumbo territory may now refinance into a conforming loan.
Higher limits open the door to higher-priced homes without the hurdles of jumbo financing.
Agents and loan officers use these limits to help clients plan realistic budgets and financing strategies.
| Year | Baseline Limit | High-Cost Limit |
|---|---|---|
| 2026 | $832,750 | $1,249,125 |
| 2025 | $806,500 | $1,209,750 |
| 2024 | $766,550 | $1,149,825 |
| 2023 | $726,200 | $1,089,300 |
| 2022 | $647,200 | $970,800 |
The steady rise reflects increasing home values nationwide.
You may qualify for a larger loan under conforming guidelines—especially in high-cost counties. Multifamily buyers especially benefit from expanded 2–4 family limits.
You may now refinance out of a jumbo loan into a conforming loan, potentially lowering your payment and interest rate.
Higher limits increase the pool of qualified buyers for your property, helping support home values.
The 2026 conforming loan limits continue the trend of rising borrowing power for buyers across the country. Knowing whether your mortgage will be conforming or jumbo can help you plan for interest rates, down payments, and approval requirements.
If you're unsure which limit applies to your county or want help reviewing your homebuying or refinancing options, I can walk you through the entire process. To connect with me directly, contact me at 917-254-2103.
For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text HomeswithJustin to 85377.
To connect with me directly, contact me at 917-254-2103. For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text Ho
To connect with me directly, contact me at 917-254-2103. For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text Ho
For your FREE home buying guide and/or down payment assistance guide, use this link: https://bit.ly/45URvuV When you read about the housing market, you’ll probably come across some information about inflation or recent decisions made by t
To connect with me directly, contact me at 917-254-2103. For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text Ho
To connect with me directly, contact me at 917-254-2103. For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text Ho