FHFA Announces 2026 Conforming Loan Limits. What Homebuyers Need to Know!
Each year, the Federal Housing Finance Agency (FHFA) updates the conforming loan limits, the maximum mortgage amount that conventional lenders can sell to Fannie Mae and Freddie Mac. These limits help keep mortgage financing accessible, affordable, and predictable for homebuyers across the U.S.
What’s Changing in 2026?
For the 2026 calendar year, FHFA has announced that the baseline conforming loan limit for most single-family homes will increase to
$832,750 for a one-unit home — up from $806,500 in 2025.
This change reflects a 3.26% average increase in home prices nationwide, as measured by FHFA’s House Price Index.
Why This Matters to Homebuyers
1. More Buying Power Within “Conforming” Loans
Conforming loans, those within these FHFA limits, are generally the most affordable and widely available mortgage products. They usually come with:
Lower interest rates than jumbo loans
More predictable underwriting standards
Easier access to well-known loan programs
Because the 2026 limits rose, more buyers may now be able to purchase homes that are above last year’s limits without needing a jumbo loan, especially in markets where prices have climbed.
2. Jumbo Loans = Higher Costs and Stricter Rules
If a home requires financing above your local conforming limit, it becomes a jumbo loan, which often means:
Higher qualifying credit score requirements
Larger down payments
Stricter debt-to-income standards
Potentially higher interest rates
By increasing the conforming limit, the FHFA helps reduce the number of borrowers forced into jumbo financing, making homeownership more accessible for many.
3. Local Limits May Vary
Although $832,750 is the baseline for most of the country, conforming limits can vary by county, especially in high-cost regions.
Bottom Line for Buyers
2026 conforming loan limits just increased, giving many buyers more borrowing ability within conventional financing.
Higher limits mean fewer people may need jumbo loans, which can be tougher and more expensive to qualify for.
Your exact loan limit depends on where you buy, so check with your loan officer early in the process.
If you’re thinking about buying a home in 2026, these updated limits could help you qualify for more home without sacrificing the benefits of a conforming loan.
Let’s explore your options today.
SOURCES: FHFA.gov, Freddie Mac, 