For most of the U.S., the baseline limit for a one-unit property has increased to $832,750, up $26,250 from 2025. This means more borrowers can access affordable conventional financing, providing more buying power in the 2026 housing market.
What does this increase mean for 2026 homebuyers? Read on for the full breakdown.
Understanding Conforming Loan Limits (CLL)
The conforming loan limit is the maximum amount of money a homebuyer can borrow when using a conventional loan. A conventional loan is a mortgage not backed or insured by a government agency (like the FHA or VA). Each year, the Federal Housing Finance Agency (FHFA) evaluates and adjusts the limit based on the national average home price.
While most areas fall under the baseline limit, areas with above-average home prices will have higher high-cost area limits. This maximum limit for a one-unit property in a high-cost area is set at 150% of the baseline limit ($1,249,125). A higher loan limit gives borrowers more purchasing power without having to apply for a Jumbo Loan.
Here is a breakdown of the 2026 Conforming Loan Limits based on property type:
| Property Type | Baseline Limit (Most Areas) | High-Cost Area Limit (Maximum) |
|---|---|---|
| One-Unit | $832,750 | $1,249,125 |
| Two-Unit | $1,066,250 | $1,599,375 |
| Three-Unit | $1,288,800 | $1,933,200 |
| Four-Unit | $1,601,750 | $2,402,625 |
To find the specific loan limits for your county, please visit the official FHFA website: https://www.fhfa.gov/document/data/fullcountyloanlimitlist2026_hera-based_final_flat.xlsx
Conforming Loans vs Jumbo Loans: What’s the Difference?
The FHFA’s conforming loan limits apply to conventional loans, which must also meet the guidelines set by Fannie Mae and Freddie Mac the government-sponsored enterprises that purchase mortgages from banks and lenders.
The standard requirements for Conforming Loans are:
- A Minimum Credit Score of 620
- Minimum of 3% Down Payment
- Debt-to-Income Ratio of 43% or lower
Please note: Conventional Loan requirements may vary between lenders.
Conventional mortgages that exceed the Conforming Loan Limit are referred to as Jumbo Loans.
Jumbo Loans typically require:
- A minimum down payment of 10%-20%.
- Higher Minimum Credit Score Requirements
- Jumbo rates are higher than conforming
Southern Trust Advantage: ARM Options for More Flexibility
If your purchase sits above the new conforming limit, Southern Trust offers adjustable-rate mortgages (ARMs) that can provide lower introductory payments.
Example: 5/1 ARM
- Fixed, lower rate for the first 5 years
- Adjusts annually in years 6–30 based on market conditions
This can be a smart strategy for buyers planning to move, refinance, or simply want a lower initial payment.
More Buying Power: What the 2026 Limit Increase Means for You
The higher conforming loan limit means more buying power for both buyers and existing homeowners in the new year.
For Homebuyers: The 3.26% increase for the new limit of $832,750 means more housing inventory is now available to homebuyers who qualify for conventional loans. You can now shop for slightly more expensive homes while keeping the benefits of a conventional loan.
For Homeowners (Refinancing): The higher limits don’t just help new buyers; they also benefit homeowners looking to refinance. If your current loan balance was just above the 2025 limit ($806,500), the new 2026 limit of $832,750 may now allow you to access the lower rates and requirements of a conventional refinance, potentially saving you thousands.
If you have been thinking of making the move, make 2026 your year!
Ready to take advantage of the new 2026 Conforming Loan Limits? Contact a Southern Trust Mortgage Loan Officer today to get started and see how much home you can afford today!
