Conventional loans
The conforming loan limit: what it is and why it matters to buyers
Fannie Mae and Freddie Mac can only buy loans up to a set size. That size, the conforming loan limit, decides whether your loan is standard, high-balance or jumbo. Each category comes with different rules and often a different price. VA also uses the limit in its entitlement math.
Reviewed November 2026 · Written for Buy Home Tips from the sources listed below
A conventional loan is not one product. Lenders sort conventional loans by size, because Fannie Mae and Freddie Mac can only buy loans up to a limit set each year. The CFPB explains that most U.S. mortgages are guaranteed by these two companies, and that loans they cannot back are usually more expensive. The conforming limit is the line.
Who sets it and how
FHFA, which regulates Fannie Mae and Freddie Mac, sets the limits. Under the Housing and Economic Recovery Act, it adjusts the baseline each year to match the change in average U.S. home prices. For 2026, FHFA measured a 3.26 percent increase between the third quarters of 2024 and 2025, and raised the baseline for one-unit properties by the same percentage to $832,750. That was $26,250 more than in 2025.
FHFA announced the 2026 values on November 25, 2025, so limits for the next year usually appear in late November.
High-cost areas and special areas
Where 115 percent of the local median home value is above the baseline, the county limit is higher. The law sets a ceiling at 150 percent of the baseline, which is $1,249,125 for a one-unit home in 2026.
Alaska, Hawaii, Guam and the U.S. Virgin Islands have their own statutory rules. FHFA's 2026 figures for those areas are a baseline of $1,249,125 and a ceiling of $1,873,675 for one unit.
Two- to four-unit properties have higher limits in every area. FHFA's county list shows each figure.
Conforming, high-balance and jumbo
| Loan size | Category | What it means for you |
|---|---|---|
| Up to the $832,750 baseline | Conforming | Standard Fannie Mae and Freddie Mac rules and pricing |
| Above the baseline, up to the county limit | High-balance or super-conforming | Still eligible for purchase, sometimes with extra pricing or tighter rules |
| Above the county limit | Jumbo or non-conforming | Lender's own rules; often larger down payments and reserves |
Some programs are limited to the baseline. Fannie Mae's rules for borrowers without credit scores, for example, exclude high-balance loans. If your loan falls just above a line, it is worth asking how the rules change.
Where else the limit shows up
VA loans. Veterans with full entitlement have no VA loan limit. For veterans with entitlement already in use, VA uses the county's one-unit conforming limit to work out remaining entitlement.
FHA loans. FHA limits are set by HUD and tied to the conforming limit. HUD's 2026 floor for one unit is 65 percent of $832,750, and its high-cost ceiling is 150 percent. FHA and conforming limits differ by county, so check both.
Finding your county
FHFA publishes a list of 2026 limits for every county and county-equivalent, plus a map. Look up the county where the property is, not where you live now. Use the column for the number of units.
When the limits change
FHFA announces the next year's limits late in the year. The 2026 limits were announced on November 25, 2025. If you are shopping near the end of a year and your loan is close to a limit, ask your lender which year's limit will apply to your loan, since that depends on timing rather than on when you made an offer.
The bottom line
The conforming limit applies to your loan amount, not the price. For 2026 the one-unit baseline is $832,750, and high-cost counties go up to $1,249,125. If your loan lands just above a line, compare quotes with a slightly larger down payment. Staying under the limit can change the rules and the price.
Checking your loan against the limit
- Look up your county on FHFA's 2026 conforming loan limit list.
- Use the limit for the number of units in the property.
- Compare it with your planned loan amount, not the price.
- If you are close to the limit, ask the lender how a slightly larger down payment would change the loan type.
- If you will close in a new year, check whether next year's limits apply.
Questions buyers ask
What is the 2026 conforming loan limit?
FHFA set the 2026 baseline for one-unit properties at $832,750. In high-cost areas the limit is higher, up to a ceiling of $1,249,125.
Who sets the conforming loan limit?
FHFA, which regulates Fannie Mae and Freddie Mac. The Housing and Economic Recovery Act requires it to adjust the baseline each year to reflect the change in average U.S. home prices.
What is a jumbo loan?
A loan larger than the conforming limit for the county. Fannie Mae and Freddie Mac cannot buy it, so lenders set their own rules and prices.
Does the limit apply to the price or the loan?
The loan amount. With a larger down payment, you can buy a home priced above the limit and still have a conforming loan.
Sources checked for this page
- FHFA: 2026 conforming loan limit values
- CFPB: what are Fannie Mae and Freddie Mac
- VA: home loan entitlement and limits
- HUD Mortgagee Letter 2025-23: 2026 forward mortgage limits
Checked November 2026. Programs and limits change; confirm with the source before you rely on a figure.