FHFA Announces 2026 Conforming Loan Limits
Breaking · Regulation · January 2, 2026
New Loan Limits for 2026
The Federal Housing Finance Agency (FHFA) has announced the 2026 conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac. The baseline conforming loan limit for single-family homes has been adjusted to reflect changes in average home prices nationwide. High-cost areas including parts of California, New York, Hawaii, and Alaska have correspondingly higher limits. These limits determine the maximum loan amount that qualifies for conventional financing without jumbo pricing.
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Impact on Mortgage Professionals
For loan officers and brokers, the updated limits mean more borrowers may qualify for conventional financing instead of jumbo loans. Conventional loans typically offer more competitive rates, lower down payment options, and simpler documentation requirements. Brokers should review their pipeline for any loans near the previous limits that might now qualify under the new thresholds. This is also a good touchpoint for past clients in high-cost markets who may benefit from refinancing into conventional terms.
Key Numbers by Property Type
The new limits apply to one-unit, two-unit, three-unit, and four-unit properties, with higher limits for each additional unit. The FHFA calculates these adjustments based on the quarterly House Price Index (HPI) data. Lenders and LOS platforms will need to update their systems to reflect the new limits, though most major platforms push these updates automatically within the first few weeks of the new year.