Conforming Loan Limits 2026: What is Changing?

If you follow the housing market—even casually—you have probably heard something that sounds familiar: conforming loan limits are increasing again. But what does this mean? Whether you are a homebuyer or mortgage expert, you have come to the right place! In this guide, we break down the conforming loan definition, outline the new 2026 conforming loan limits, and compare them to 2025.

What Is a Conforming Loan?

A conforming loan is a mortgage that follows the criteria set by Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs). The biggest rule is the maximum loan amount, also known as the “conforming loan limit.” If a loan falls within the limit, then it is considered a conforming loan. Meanwhile, if it exceeds the limit, then it is a non-conforming loan (most commonly called a “jumbo loan”).

When a loan “conforms,” lenders may sell it to Fannie Mae or Freddie Mac. Doing so lowers the risk for lenders while providing homebuyers with major advantages:

• Easier mortgage qualification
• More flexible guidelines
• Better mortgage rates

Compared to conforming loans, jumbo loans have stricter underwriting standards. They require stronger credit, higher income, more cash up front, and higher mortgage interest rates. Therefore, most people prefer conforming loans for their mortgage.

Who Sets Conforming Loan Limits? Why Do Limits Change Every Year?

The Federal Housing Finance Agency (FHFA) determines conforming loan limits based on national pricing trends. In other words, they review the increase/decrease in property prices across the country, then adjust the limits accordingly.

When home values rise, loan limits usually increase too. This adjustment helps buyers keep pace with the market—rather than resorting to higher-rate alternatives. Ultimately, the goal is to give access to conventional financing for as many borrowers as possible. Yearly limit changes are meant to ensure that everything stays fair in the current housing market.

What Are the New Conforming Loan Limits for 2026?

The 2026 conforming loan limits are in—and yes, they are higher than the 2025 conforming loan limits. Here’s a side-by-side comparison:

	2026 BASELINE LIMIT	2025 BASELINE LIMIT	2026 HIGH-COST AREA LIMIT	2025 HIGH-COST AREA LIMIT
1-UNIT HOME	$832,750	$806,500	$1,249,125	$1,209,750
2-UNIT HOME	$1,066,250	$1,032,650	$1,599,375	$1,548,975
3-UNIT HOME	$1,288,800	$1,248,150	$1,933,200	$1,872,225
4-UNIT HOME	$1,601,750	$1,551,250	$2,402,625	$2,326,875

 

Looking at the numbers, the max conforming loan amount 2025 for a 1-unit home (single-family home) was $806,500. In 2026, we will see an increase of $26,250 (or 3.26%).

What do these new limits mean? Borrowers in many areas can now qualify for larger conforming mortgages without shifting to jumbo loan financing. This offers more purchasing power and fewer hurdles.

2026 Conforming Loan FAQ

Here are answers to the questions we hear most often:

How do I find the 2026 conforming loan limit for my area?

Loan limits vary by county. A mortgage lender can check the official limit for your county or ZIP code, or you can use the FHFA’s map of conforming loan limits.

Do higher loan limits make it easier to avoid a jumbo loan?

Yes. When conforming mortgage limits increase, more loans will be considered conforming instead of jumbo. That means borrowers can sidestep the tougher rules and higher costs that typically come with jumbo loans.

What happens if my loan amount is over the 2026 limit?

When the mortgage loan is above the limit, borrowers generally look at:

• Jumbo loan options
• Higher down payments to reduce the loan amount
• Piggyback or second-lien strategies (subject to lender guidelines)

These options have different requirements and terms, so it’s important to talk with a mortgage lending expert.

Can I use a conforming loan for a second home or investment property?

Yes! Conforming loan programs cover primary residences, second homes, and investment properties. However, qualification criteria and rates may vary, especially on investment property loans.

Are conforming loans the same thing as conventional loans?

Not exactly, but they are closely related. Conventional loans are mortgages that are not backed by the government. This means they don’t have federal insurance or guarantees like VA or FHA loans do. Instead, these loans are offered by private lenders like banks.

Meanwhile, a conforming loan is a type of conventional loan. As mentioned earlier, conforming loans follow the rules set by Fannie Mae and Freddie Mac. It’s worth noting that these organizations are government-sponsored enterprises, but they are not government agencies like the FHA or VA. Fannie Mae and Freddie Mac DO NOT guarantee loans. They simply buy qualifying loans from lenders, helping banks provide mortgages to more people. Because of this structural distinction, conforming loans fall under the category of conventional loans.

Main takeaway: All conforming loans are conventional loans, but not all conventional loans are conforming loans.

Find the Best Mortgage for You

Even with the numbers sitting in front of you, picking the right mortgage can be confusing. Market conditions are constantly changing, and those shifts directly affect today’s mortgage rates. Academy Bank’s experienced mortgage officers are here to assist. They will guide you through your options and help you choose the best home loan for your budget.

Contact an expert today or compare mortgage options to get started!

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