FHFA raises 2026 conforming loan limit to $832,750

The baseline conforming loan limit is set to increase by 3.25% in 2026, with Fannie Mae and Freddie Mac now authorized to purchase mortgages up to $832,750 for one-unit properties in most parts of the country, according to the Federal Housing Finance Agency (FHFA).

The new limit, aligned with home-price trends, indicates a weaker housing market this year that’s driven by still-elevated mortgage rates. By comparison, in the past two years, the limit increased by more than 5%.

Loan caps drew renewed attention this year following speculation that the Trump administration would push to reduce the current level as part of a broader effort to shrink the footprint of the government-sponsored enterprises (GSEs). FHFA Director Bill Pulte dismissed that idea in March.

Each November, the FHFA announces the new limits for the coming year. Increases resumed in 2016, when home prices returned to pre-recession levels — a condition set by the 2008 Housing and Economic Recovery Act (HERA). Importantly, even if home prices fall, the ceiling does not decrease; it only rises when home prices increase year over year.

Here are the FHFA’s conforming loan limits for one-unit loans in the lower 48 states since 2016:

Lender moves

Mortgage lenders typically anticipate the FHFA’s decision by raising their own conforming loan limits in advance amid fierce competition. Loans that exceed the FHFA’s official limit fall into the jumbo market, which is primarily dominated by banks.

This year, Rocket Mortgage was more aggressive. In mid-October, it raised its limit to $825,550 for single-family homes across 48 states — about a month after competitors such as United Wholesale Mortgage (UWM), Pennymac and CrossCountry Mortgage implemented smaller increases, each setting their cap at $819,000.

From a policy perspective, raising the conforming loan limit helps buyers finance higher-priced, one-unit homes more efficiently at a time when affordability remains strained. But these increases also continue to fuel debate over whether government-backed mortgages should extend to expensive homes.

Conforming caps surpassed the $1 million threshold in 2022 for high-cost areas, where 115% of the local median home value exceeds the baseline limit. The HERA sets the ceiling at 150% of the baseline limit, which means the 2026 ceiling for one-unit properties will be $1,249,125. 

Special statutory provisions establish different limits for Alaska, Hawaii, Guam and the U.S. Virgin Islands. In these areas, the baseline loan limit for one-unit properties is $1,249,125, while the ceiling will be $1,873,675.