Conforming loan limit increases were announced this week for 2026. Fannie Mae and Freddie Mac, under FHFA, will securitize loan amounts up to $832,750, an increase of $26,250 from 2025. The FHFA loan limits each year are tied to US home prices, and as prices have increased over the years, loan limits increase to keep up and offer home buyers competitive mortgage products to buy homes. This year’s limit reflects growth in home prices despite significant headwinds resulting from stubbornly high rates (which have recently seen some relief – get a free rate quote in seconds here!).

Conforming/Conventional loans allow home buyers and home owners access to competitive products and more flexibility in qualifying than private financing options. Home buyers can buy a home using conventional loans with as little as 3% down (first time buyers), and refinance with as little as 5% equity in their homes, at competitive rates.

The conforming loan limit is applicable to all markets across the US.

High Cost Area Loan Limits

FHFA acknowledges that some areas have home prices that typically exceed the conforming loan limits, and for these areas, conventional loans are extended at higher loan amounts. For 2026, the new ceiling for conventional financing will be up to $1,249,125.

High cost area financing is based on local median home values exceeding the baseline conforming loan limit by 115% or more. Many counties that are high cost will see loan limits somewhere between the $832, 750 base limit and the $1,249,125 maximum limit.

Multi-Unit Home Limits

Multi-unit properties are eligible for conventional financing at higher loan limits as well. For 2026, multi-unit financing is capped at $2,402,625 (4-unit properties in the highest cost of living US markets). Loan limits vary based on the number of units AND county, so limits vary substantially in various areas for various property types.

What New Limits Mean For You

Since conventional financing offers some of the most flexible loan terms available (low down payments, competitive rates, availability on condos that aren’t HUD/VA approved), being able to borrow more means better access to quality loan products. Low down payment options, at rates that are often better than jumbo loan options.

.Many private lenders or banks offering nonQM or jumbo financing often charge a premium on rate, or have more stringent requirements than conventional loans (for example, higher down payments), so higher conventional loan limits provide home buyers and home owners some of the best financing options available – increased limits allow.

Questions about your local loan limits or mortgage options available to you? We’re here to help – feel free to reach out here or give us a call!