Conforming Loan Limits for 2026, and When a Loan Becomes Jumbo

When you start comparing mortgages, you will run into the phrase "conforming loan." It sounds like jargon, but it comes down to one dollar figure set by a federal agency each year. If your loan amount is at or below that figure for your county, the loan can be sold to Fannie Mae or Freddie Mac. Above it, the loan is a jumbo loan. Knowing where the line sits for your county helps you understand the loan options you will be offered.

1. What "conforming" means

The Federal Housing Finance Agency (FHFA) explains that Fannie Mae and Freddie Mac are restricted by law to buying single-family mortgages with original balances below a specific amount, known as the conforming loan limit. Loans above this amount are known as jumbo loans.

Most lenders do not keep every loan they make. Many sell them, and Fannie Mae and Freddie Mac are among the largest buyers. A loan that fits within the limit, and meets their other standards, can be sold to them. That is the practical meaning of conforming.

2. The 2026 numbers

FHFA announced the 2026 limits on November 25, 2025. For one-unit properties:

The baseline rose by $26,250 from 2025, which puts the 2025 baseline at $806,500. FHFA says limits will be higher in all but 32 U.S. counties or county equivalents.

3. How the limit is set

The rules come from the Housing and Economic Recovery Act of 2008, known as HERA. Under it, FHFA must adjust the baseline each year to reflect the change in the average U.S. home price.

For 2026, FHFA used its own House Price Index, which showed prices rising 3.26% on average between the third quarter of 2024 and the third quarter of 2025. The baseline went up by the same percentage.

In other words, the limit follows home prices. In a year when prices rise, the limit rises. The limit is set once a year, so the 2026 figure applies to loans Fannie Mae and Freddie Mac acquire during calendar year 2026.

4. High-cost areas

One national number would not fit everywhere. A $832,750 loan buys a lot of house in some counties and very little in others. So HERA adds a high-cost rule:

• If 115% of the local median home value is more than the baseline, the county gets a higher limit.
• That higher limit is set as a multiple of the area's median home value.
• It cannot exceed a ceiling of 150% of the baseline. For 2026, 150% of $832,750 is $1,249,125.

Alaska, Hawaii, Guam, and the U.S. Virgin Islands have their own statutory provisions, which is why their baseline equals the ceiling elsewhere and their ceiling is higher still.

5. Finding your county's limit

FHFA publishes the full 2026 list for every county and county equivalent as a spreadsheet, a CSV file, and a PDF, along with an interactive map. Search for your county and read the one-unit column if you are buying a single-family home or condo. The limit applies to the loan amount, not the purchase price.

6. The math that matters: loan amount, not price

Because the limit applies to what you borrow, your down payment decides which side of the line you land on. Two examples in a county at the $832,750 baseline:

• A $900,000 home with 10% down. The loan is $810,000. That is under the limit, so it can be conforming.
• A $950,000 home. To keep the loan at or below $832,750, you would need to put down at least $117,250, about 12.3% of the price. With less down, the loan is jumbo.

If you are close to the line, running these numbers before you make an offer tells you which loan type to ask lenders about.

7. Why the line matters to a first-time buyer

7.1. Different loan products

Conforming and jumbo loans can come with different requirements, pricing, and down payment expectations, because jumbo loans cannot be sold to Fannie Mae or Freddie Mac. If your loan is close to the limit, ask each lender to quote you both ways: one at or below the limit with a larger down payment, and one above it.

7.2. VA loans use the same figure

The Department of Veterans Affairs says a VA-backed purchase loan offers the ability to borrow up to the Fannie Mae and Freddie Mac conforming loan limit on a no-down-payment loan in most areas, and more in some high-cost counties. You can borrow more than that if you make a down payment. So the conforming limit matters even for buyers who are not using a conventional loan.

7.3. The limit changes every year

Because the limit tracks home prices, the number in a lender's quote from late in one year may differ from the number that applies after January 1. FHFA has announced each year's values in late November (November 25, 2025 for 2026), so the 2027 figures were not published as of October 14, 2026. If you are shopping across the year-end, check which year's limit will apply when the loan closes.

8. A quick checklist

1. Look up your county's 2026 one-unit limit on FHFA's list or map.
2. Subtract your planned down payment from your target price to get your loan amount.
3. Compare the loan amount with the limit.
4. If you are within reach of the line, ask lenders to price both a conforming and a jumbo version.
5. If you are buying near year-end, confirm which year's limit applies.

9. Key takeaways

• A conforming loan is one Fannie Mae and Freddie Mac can buy; loans above the limit are jumbo loans.
• For 2026, the baseline limit for a one-unit home is $832,750, up $26,250 from 2025.
• High-cost counties can go up to $1,249,125, and Alaska, Hawaii, Guam, and the U.S. Virgin Islands up to $1,873,675.
• The baseline rose 3.26%, matching FHFA's measure of average home price growth.
• The limit applies to the loan amount, so your down payment can move you from jumbo to conforming.