Conforming Loan Limits 2026: $832,750 Baseline (Up $26,250)
🚨 BREAKING: FHFA Announces NEW Conforming Loan Limits 2026
Effective January 1, 2026: Baseline increases to $832,750 (up $26,250 from $806,500), high-cost ceiling rises to $1,249,125. This means you can borrow MORE with conventional loans!
Conforming loan limits 2026: Baseline (most of USA): $832,750 (up $26,250 from 2025). High-cost ceiling: $1,249,125 (up $39,375 from 2025). Special exception areas (Alaska, Hawaii, Guam, Virgin Islands): baseline $1,249,125, ceiling $1,873,675. Why increase? Home prices rose 3.26% nationally (Q3 2024-2025). What this means: Fannie Mae/Freddie Mac can buy loans up to these limits = better rates for you. Above limits? Need jumbo loan (stricter requirements). Compare conforming loan rates. Related: conventional requirements.
📊 Quick Conforming Limits Comparison
Baseline (Most USA)
$832,750
Up $26,250 from 2025
High-Cost Ceiling
$1,249,125
Up $39,375 from 2025
Min Down Payment
3-5%
620+ credit score
Complete Conforming Loan Limits 2026
Single-Family Conforming Limits (1 Unit)
| Area Type | 2025 Limit | 2026 Limit | Increase |
|---|---|---|---|
| Baseline (Most USA) | $806,500 | $832,750 | +$26,250 (3.26%) |
| High-Cost Ceiling | $1,209,750 | $1,249,125 | +$39,375 (3.26%) |
| Alaska/Hawaii/Guam/VI (Baseline) | $1,209,750 | $1,249,125 | +$39,375 (3.26%) |
| Alaska/Hawaii/Guam/VI (Ceiling) | $1,814,625 | $1,873,675 | +$59,050 (3.26%) |
💡 What is "conforming"? Loans that meet Fannie Mae/Freddie Mac standards (credit, income, loan amount). These loans get best rates because Fannie/Freddie buy them from lenders.
Multi-Unit Conforming Limits 2026
| Units | Baseline | High-Cost Ceiling | Alaska/Hawaii/Guam/VI |
|---|---|---|---|
| 1 Unit | $832,750 | $1,249,125 | $1,873,675 |
| 2 Units | $1,066,000 | $1,599,000 | $2,398,500 |
| 3 Units | $1,288,600 | $1,932,900 | $2,899,350 |
| 4 Units | $1,601,650 | $2,402,475 | $3,603,700 |
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Conforming vs Jumbo Loans: Key Differences
| Feature | Conforming Loan | Jumbo Loan |
|---|---|---|
| Loan Amount | ≤$832,750 (baseline) | >$832,750 |
| Interest Rate | 6.00-6.25% (lower) | 6.50-7.00% (higher) |
| Credit Score | 620+ (flexible) | 700+ (strict) |
| Down Payment | 3-5% (low) | 10-20% (high) |
| DTI Ratio | 43% max | 36-43% max |
| Reserves | 2-6 months | 6-12 months |
| Backed By | Fannie Mae/Freddie Mac | Private lenders only |
💰 Savings Example: $850,000 loan. Conforming rate 6.00% = $5,095/month. Jumbo rate 6.50% = $5,373/month. Difference: $278/month = $100,080 over 30 years! But $850K exceeds conforming limit ($832,750), so you'd need jumbo. Compare both options.
High-Cost Areas: Complete Breakdown
What Makes an Area "High-Cost"?
High-cost area = 115% of local median home value exceeds baseline ($832,750). FHFA uses county-level median home prices to determine limits. If 115% of median > $832,750, area gets higher limit up to ceiling ($1,249,125).
📍 Top High-Cost Counties 2026
- • California: San Francisco ($1,249,125), San Mateo ($1,249,125), Santa Clara ($1,249,125), Marin ($1,249,125), Los Angeles ($1,249,125)
- • New York: New York County/Manhattan ($1,249,125), Kings/Brooklyn ($1,249,125), Queens ($1,249,125), Westchester ($1,089,300)
- • Washington: King County/Seattle ($1,126,950), Snohomish ($989,250)
- • Colorado: Boulder ($1,014,975), Summit ($1,249,125)
- • Massachusetts: Suffolk/Boston ($1,054,500), Nantucket ($1,249,125)
Real-World Examples
🏠 Baseline Area (Phoenix, AZ)
Limit: $832,750
Max Home Price: $865,000 (5% down)
Down Payment: $43,250
Monthly Payment: $5,560 (6.00% rate)
🏙️ High-Cost Area (San Francisco, CA)
Limit: $1,249,125
Max Home Price: $1,315,000 (5% down)
Down Payment: $65,750
Monthly Payment: $8,340 (6.00% rate)
Frequently Asked Questions
What is the conforming loan limit for 2026?
Baseline (most of USA): $832,750. High-cost ceiling: $1,249,125. Special exception areas (Alaska, Hawaii, Guam, Virgin Islands): baseline $1,249,125, ceiling $1,873,675. Multi-unit: 2-unit up to $1,599,000, 3-unit up to $1,932,900, 4-unit up to $2,402,475 (high-cost). Why increase? Home prices rose 3.26% nationally (Q3 2024-2026). FHFA adjusts limits annually based on FHFA House Price Index. What is conforming? Loans that meet Fannie Mae/Freddie Mac standards. These loans get best rates (6.00-6.25% vs 6.50-7.00% jumbo). Compare conforming rates.
What happens if I exceed the conforming loan limit?
You need a jumbo loan. Jumbo = non-conforming = not backed by Fannie/Freddie. Stricter requirements: 700+ credit (vs 620+ conforming), 10-20% down (vs 3-5%), 36-43% DTI (vs 43%), 6-12 months reserves (vs 2-6). Higher rates: Jumbo 6.50-7.00% vs conforming 6.00-6.25%. Cost difference: $850K loan, jumbo 6.50% = $5,373/month vs conforming 6.00% = $5,095/month = $278/month more = $100K over 30 years. Alternative: Make larger down payment to stay under limit. Example: $900K home, put 10% down ($90K) = $810K loan (under $832,750 limit) = conforming rates!
How do I find my county's conforming loan limit?
3 ways: (1) FHFA website: Visit FHFA.gov/data/conforming-loan-limit, search by county/ZIP. Shows exact 2026 limit for your area. (2) Ask lender: All lenders have complete database. They'll tell you exact limit + calculate max home price. (3) General rule: Most USA = $832,750. Major metros (SF, NYC, LA, Seattle, Boston) = $1,000K-$1,249,125. Why it matters: Conforming = better rates (6.00-6.25%). Jumbo = higher rates (6.50-7.00%). Difference = $100K+ over 30 years. Strategy: If close to limit, increase down payment to stay conforming. Example: $900K home, 10% down = $810K loan (conforming) vs 5% down = $855K loan (jumbo).
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