If you’re thinking about buying a home, you may have noticed how home prices continue to change over the years. As prices shift, so do the guidelines that help determine how much homebuyers can borrow. One of those guidelines is the conforming loan limit.
Each year, conforming loan limits are reviewed and updated by the Federal Housing Finance Agency (FHFA) to reflect broader housing market trends. For 2026, those limits have increased for most counties in the U.S., which may affect how some homebuyers think about their financing options.
Understanding what these limits are can help you make sense of where you stand and what questions to ask as you plan your next move. This guide breaks down the basics of conforming loan limits, what changed for 2026, and why those updates matter.
What Are Conforming Loan Limits?
Conforming loan limits are the maximum loan amount under which a mortgage can be considered a “conforming” loan. Conforming loans meet specific size and guideline requirements established annually and are widely used across the mortgage market.
Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that play a critical role in the country’s housing finance system, use conforming loan limits to help determine which mortgages they can buy from lenders.
It’s important to note that conforming loan limits are not the same as how much you personally can afford or qualify to borrow. Instead, they act as a reference point within the broader mortgage landscape.
What Changed for 2026 Conforming Loan Limits?
For 2026, conforming loan limits for one-unit properties have increased compared to the prior year. The baseline limit rose by 3.26 percent, moving from $806,500 in 2025 to $832,750 in 2026.
This adjustment reflects changes in national home prices from Q3 2024 to 2025. According to federal housing data, average home values increased by the same percentage (3.26%) over the measured period, prompting the updated loan limit for the new year.
It’s also important to remember that this baseline limit applies to most areas across the country. However, the baseline conforming limit for 1-unit properties in Alaska, Hawaii, Guam and U.S. Virgin Islands also increased, going from $1,209,750 in 2025 to $1,249,125 in 2026.
In designated higher-cost markets, loan limits have also increased. For 1-unit homes in high-cost areas outside of Alaska, Hawaii, Guam and U.S. Virgin Islands, the limit increased from $1,209,750 to $1,249,125. 1-unit homes in high-cost parts of Alaska, Hawaii, Guam and U.S. Virgin Islands have a limit of $1,873,675.
Why Conforming Loan Limits Change Each Year
Conforming loan limits are reviewed annually to help ensure they stay aligned with current housing market conditions. Each year, federal housing authorities evaluate how average home values have moved over a defined period.
When home prices rise on a national level, conforming loan limits may be adjusted upward to reflect that shift. When prices remain flat or decline, limits may hold steady.
This process is designed to keep conforming loans relevant as markets evolve. While the numbers may change annually, the goal is always to ensure loan limits reflect real-world housing costs rather than outdated benchmarks.
What the 2026 Limits Could Mean for Homebuyers
An increase in conforming loan limits might affect how some buyers approach their financing. With the higher 2026 threshold, certain home purchases that may have exceeded conforming limits in the past could now fall within them.
For some buyers, though, the updated limit may not meaningfully change their situation at all. That’s because conforming loan limits are only one factor in the mortgage process, alongside considerations such as income, credit history, existing debt, and down payment amount.
It’s also worth noting that loan limits don’t determine whether a home is affordable or whether a borrower will be approved. Instead, they help define how a loan is categorized. Understanding where a purchase price falls in relation to the conforming limit can provide helpful context, but that’s just a small piece of the full lending equation for buyers.
Conforming vs. Jumbo Loans
The primary distinction between conforming and jumbo loans comes down to loan size. Conforming loans fall within the established loan limits for a given year, while jumbo loans exceed those limits. Because they fall outside conforming guidelines, jumbo loans may follow different underwriting criteria.
This doesn’t make one loan type better than the other. They’re designed for different borrowing needs and price ranges. In some cases, a higher conforming loan limit may reduce the need for a jumbo loan. In others, a jumbo loan may still be the appropriate option based on the home price and the buyer’s overall financial profile.
How to Find the Loan Limit for Your Area
Official loan limit values are published annually and organized by county, making it possible to look up the limit that applies to your specific location. These figures are based on the same underlying methodology but adjusted to reflect regional home price differences.
Because loan limits are location-specific, understanding the limit for your county can help clarify how a particular home price fits within conforming guidelines. If you want to find your county’s loan limit for 2026, you can use the FHFA’s interactive map tool here.
What Loan Limits Don’t Tell You
The conforming loan limit does not determine whether a borrower will be approved, what loan amount a borrower can be approved for, what interest rate they may receive, or what their monthly payment will be. Other factors, such as income, credit profile, existing obligations, and down payment, play a significant role in the mortgage process. Loan limits simply help define how a loan is categorized within the broader lending framework.
Final Thoughts
Conforming loan limits are one of many guidelines that help shape the mortgage industry, and the 2026 update reflects how home prices have continued to change over time. While the numbers themselves may shift from year to year, the purpose behind them remains the same: to keep lending standards aligned with current housing market conditions.
For homebuyers, understanding where a purchase price falls in relation to conforming loan limits can help bring some additional clarity to the financing conversation. But arguably more important is recognizing that loan limits are only one part of a much bigger picture that includes personal financial goals, budget considerations, and long-term plans.
By staying informed and approaching the process with the right context, buyers can make decisions with greater confidence.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.
