Conforming Loan Limit
The conforming loan limit is the maximum loan amount that Fannie Mae and Freddie Mac will purchase or guarantee. Loans at or below this limit are conforming loans. Loans exceeding it are jumbo loans. Conforming loans are cheaper because they can be sold to Fannie Mae and Freddie Mac, which reduces risk for lenders. That reduced risk translates to lower rates, smaller down payments, and more lender options for the borrower. For 2026, the baseline conforming loan limit is $832,750 ] for single-unit properties in most counties. In high-cost areas, the ceiling is $1,249,125 ]. The Federal Housing Finance Agency (FHFA) adjusts these limits annually based on changes in average U.S. home prices.
What This Means
Current Limits and Adjustments
The baseline conforming loan limit for a single-unit property is $832,750 for 2026 2026 baseline]. In designated high-cost areas where median home values exceed 115% of the baseline, the limit is higher, up to a ceiling of $1,249,125 for a single-unit property 2026 high-cost ceiling]. Higher limits also apply to multi-unit properties (two-unit, three-unit, and four-unit), with each tier having its own baseline and high-cost ceiling. The FHFA publishes updated limits each November, effective the following January.
Why the Limit Matters
The conforming loan limit directly affects borrower costs and loan availability. Conforming loans benefit from Fannie Mae and Freddie Mac's standardized guidelines and secondary market liquidity, which typically translates to lower interest rates and more favorable terms compared to jumbo loans. Borrowers in markets where home prices approach or exceed the limit face a meaningful pricing boundary. A loan just above the conforming limit may carry a rate premium of 0.25% to 0.50% or more , and jumbo lenders often require larger down payments, higher credit scores, and greater reserves.
High-Cost Areas
The FHFA designates high-cost areas at the county or metropolitan statistical area level. These designations reflect local median home values and allow borrowers in expensive markets to access conforming loan pricing at higher loan amounts. Alaska, Hawaii, Guam, and the U.S. Virgin Islands have their own baseline limits set at 150% of the standard baseline . This allows borrowers in expensive markets to stay in conforming pricing instead of being pushed into jumbo loans with higher rates and stricter requirements. Borrowers can look up the conforming loan limit for any county through the FHFA online lookup tool.