You are limited in the amount of a mortgage loan you may qualify for as a borrower based on factors such as your income, debt-to-income (DTI) ratio, and credit score. But there is another limit many buyers do not realize exists: the Federal Housing Finance Agency (FHFA) sets the maximum size of a conventional loan that can be acquired by Fannie Mae and Freddie Mac. Loans at or below that threshold are called conforming loans, and the FHFA updates these limits every year.
For 2026, the conforming loan limits increased again, reflecting the FHFA’s home price data and the required formula under federal law.
Key takeaways
- The FHFA sets conforming loan limits each year (typically announced in November) for the following year.
- These limits represent the maximum original loan amount that Fannie Mae and Freddie Mac can generally buy or guarantee, which is why they matter for conventional financing.
- The 2026 baseline conforming loan limit for a one-unit property in most U.S. counties is $832,750.
- Conforming loans often price more favorably than jumbo loans because they can be sold into the conventional (agency) market, though your rate and fees still depend on credit, down payment, occupancy, and other factors.
What is the conforming loan limit?
The conforming loan limit is the dollar cap placed on conventional mortgages by the FHFA. It reflects the maximum original loan amount that Fannie Mae and Freddie Mac are permitted to purchase or guarantee for a given area and property type. Loans at or under the applicable limit are “conforming” if they also meet agency underwriting requirements. FHFA.gov+1
Each year, the FHFA updates the limits using a formula established by the Housing and Economic Recovery Act (HERA), which ties annual changes to the FHFA’s home price data.
For 2026, the FHFA set a higher baseline limit based on the most recent annual change in the FHFA House Price Index.
How does it work?
Conforming loan limits are directly tied to changes in home prices. When prices rise, limits generally rise too. The FHFA publishes:
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A baseline limit used in most counties, and
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Higher limits in certain high-cost counties where local home values are significantly above the national average, up to a cap of 150% of the baseline.
Loan limits are set by county (or county equivalent). That is why two buyers in the same state can have different conforming limits depending on where they are buying. You can verify the exact county limit using the FHFA’s published county lists and map.
Important compliance note: conforming loan limits apply to the original loan amount, not the remaining balance later. Lenders may also apply additional requirements (often called “lender overlays”) even when a loan is under the limit.
What do the 2026 conforming loan limits mean for you?
Conforming loans are structured to meet conventional agency guidelines, which often results in more favorable pricing than jumbo loans for qualified borrowers. If a home’s price exceeds your county’s limit, you may still qualify by increasing your down payment or confirming whether the property is located in a high-cost county with higher limits.
Keep in mind that eligibility is not based on loan amount alone. Lenders also evaluate credit profile, debt-to-income ratio, property type, occupancy, and loan-to-value. Primary residences typically allow higher LTVs than investment properties, and mortgage insurance is generally required above 80% LTV.
Conforming loan limit for 2026
Conforming loan limits increased for 2026. These limits apply to conventional loans eligible for acquisition by Fannie Mae and Freddie Mac in 2026, with delivery eligibility tied to 2026 effective dates and agency guidance.
Maximum baseline loan amount for 2026
| Property units | Contiguous States, District of Columbia, and Puerto Rico | Alaska, Hawaii, Guam, and the U.S. Virgin Islands |
|---|---|---|
| 1 | $832,750 | $1,249,125 |
| 2 | $1,066,250 | $1,599,375 |
| 3 | $1,288,800 | $1,933,200 |
| 4 | $1,601,750 | $2,402,625 |
Maximum conforming loan limits for high-cost areas for 2026
In designated high-cost counties, the maximum limit is 150% of the baseline, which equals:
| Property units | Contiguous States, District of Columbia, and Puerto Rico |
|---|---|
| 1 | $1,249,125 |
| 2 | $1,599,375 |
| 3 | $1,933,200 |
| 4 | $2,402,625 |
Can you borrow more than the conforming loan limit?
Yes. If your loan amount exceeds the conforming limit for the county and number of units, the loan is typically considered non-conforming, commonly called a jumbo loan.
In general, jumbo loans can be harder to qualify for because they are not eligible for acquisition under the conforming framework. As a result, lenders often require stronger credit, more reserves, and larger down payments, and pricing can differ from conforming loans. (Exact requirements vary by lender and market conditions.)
What to do if you don’t qualify for a conforming loan
If the property price pushes your loan amount above the conforming limit, you have several practical options:
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Increase your down payment
A higher down payment can bring your loan amount under the county limit so you can pursue conforming financing, assuming you also meet underwriting guidelines. -
Explore jumbo (non-conforming) financing
If you prefer a smaller down payment or the home price is well above conforming limits, a jumbo loan may be an option, depending on qualifications and lender programs. -
Consider government-insured programs (when eligible)
FHA, VA, and USDA loans are not “conforming conventional” loans, but they also have program rules and, in some cases, loan limits. FHA limits, for example, are published by HUD and vary by county. VA and USDA eligibility and limits (where applicable) depend on program rules, entitlement, property location, and lender requirements.
Compliance note: program availability, underwriting standards, and overlays can change. Always confirm requirements with a licensed loan professional for your scenario.
Know your limits when you begin your search
Before you shop seriously, it helps to identify:
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Your county conforming loan limit (and whether the home is in a high-cost county), and
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The loan amount you want to target based on your down payment, comfort level, and qualification range.
The most reliable way to confirm county-level limits is the FHFA’s county resources. Local real estate agents and loan officers can also help you translate those limits into practical price ranges for neighborhoods you are considering.
You don’t have to navigate the mortgage process alone
At Hero Home Programs, we understand how confusing the home-buying process can be, especially for first-time homebuyers. Our team is here to help answer questions and guide you through your options, including how conforming limits affect the loan types you may qualify for. To learn more, schedule a consultation with us today.
