FHFA Announces 2026 Conforming Mortgage Loan Limits

The Federal Housing Finance Agency (FHFA) has announced that the baseline conforming loan limit (CLL) for one-unit properties in most of the United States will rise to $832,750 for 2026, which is an increase of $26,250 from 2025. For high-cost areas, the new ceiling loan limit will be $1,249,125, based on 150% of the baseline limit.​

Key 2026 Conforming Loan Limits

• Baseline (most of the U.S.): $832,750 for a single-unit home

• High-cost area maximum: $1,249,125 for a single-unit home

• Limits for two- to four-unit homes are also adjusted higher, depending on the area

• Special statutory provisions apply different limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where the ceiling can reach $1,873,675 for one-unit properties.​

Rationale for Increase

• The increase reflects a 3.26% rise in the average U.S. home price, as measured by the FHFA’s House Price Index from Q3 2024 to Q3 2025.​

• Conforming loan limits are updated annually to match changes in median home values, ensuring the limits keep pace with the market.​

Effective Date

• These new limits apply to loans delivered to Fannie Mae and Freddie Mac on or after January 1, 2026.​

For prospective homebuyers, the higher limits mean larger conventional mortgages may now qualify for standard pricing and underwriting, avoiding the need for “jumbo” loans in most markets.​

Your maximum mortgage amount for a conventional loan in 2026 rises to $832,750 in most parts of the country, up from $806,500 in 2025. If you’re buying in a federally designated high-cost area, you can borrow up to $1,249,125 with a standard conforming loan. These increases mean you can now finance more with a regular mortgage before crossing into the “jumbo loan” category, which requires stricter underwriting.​

What This Means for Borrowers

• You may qualify for a conventional mortgage on a more expensive home than last year, with easier approval rules and often lower rates compared to jumbo loans.​

• For multi-unit properties, the maximum allowable loan amount has also increased (e.g., $1,066,250 for 2 units; $1,288,800 for 3 units standard, with higher limits in high-cost areas).​

• In Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the conforming limit for a one-unit home can reach $1,873,675 due to special federal rules.​

Direct Impact on Your Financing

• New limits improve affordability and expand your buying power.

• You can avoid the tougher credit and down payment requirements typical for jumbo loans if you stay under the new conforming threshold, meaning potentially less cash at closing and easier qualification.​

Make sure to check your specific county’s limit and property type to determine your exact maximum loan size for 2026.