What Is the Conforming Loan Limit in 2026?

You're looking at homes in the $800,000 range and your lender mentions something about the "conforming loan limit." Suddenly there's talk of jumbo loans, higher rates, and stricter requirements. What just happened?

The conforming loan limit is the maximum mortgage amount that Fannie Mae and Freddie Mac will purchase or guarantee. Loans within this limit are called "conforming loans" and typically come with lower interest rates and more flexible requirements. Loans above the limit are called jumbo loans and play by different rules.

Table of Contents

• The 2026 Conforming Loan Limits
• How the Limit Is Set
• Why the Limit Matters for Your Mortgage
  • Interest Rates
  • Down Payment Requirements
  • PMI Costs
  • Underwriting Standards
• High-Cost Areas: Where Limits Are Higher
• Strategies Around the Conforming Limit
  • Make a Larger Down Payment
  • Use a Piggyback Loan (80/10/10)
  • Wait for the Limit to Increase
• Conforming vs. FHA Loan Limits
• Know the Limit Before You Shop

The 2026 Conforming Loan Limits

The Federal Housing Finance Agency (FHFA) adjusts the conforming loan limit annually based on changes in average home prices. For 2026:

The standard limit of $806,500 applies to the vast majority of counties in the United States. The high-cost ceiling of $1,209,750 applies to areas where the median home price significantly exceeds the national baseline, which is set at 150% of the standard limit.

Some areas fall between the standard and high-cost limits. These "high-balance" or "super conforming" areas have limits that reflect local home prices. For example, a county where the median home price warrants a $900,000 limit would have that as its specific cap.

How the Limit Is Set

The FHFA uses the Housing Price Index (HPI) to track home price changes nationally. When average home prices rise, the conforming loan limit rises with them.

Here's how the limit has grown over recent years:

The limit has increased substantially over the past few years, reflecting the sharp run-up in home prices since 2020. This means properties that would have required a jumbo loan a few years ago now fall within conforming limits.

Why the Limit Matters for Your Mortgage

The conforming loan limit creates a dividing line in the mortgage market. Being on one side or the other affects several aspects of your loan:

Interest Rates

Conforming loans typically carry lower interest rates than jumbo loans. The difference is usually 0.25% to 0.5%, though it varies by market conditions.

Why the difference? Fannie Mae and Freddie Mac buy conforming loans from lenders, bundle them into mortgage-backed securities, and sell them to investors. This secondary market creates liquidity and keeps rates competitive. Jumbo loans don't have this same government-backed secondary market, so lenders take on more risk and charge accordingly.

On a $800,000 loan, a 0.25% rate difference amounts to about $137 more per month, or roughly $49,000 over 30 years. That's a meaningful amount.

Down Payment Requirements

Conforming loans offer more flexibility on down payments:

• Conventional conforming: as low as 3% down for first-time buyers
• Jumbo loans: typically 10% to 20% down minimum

On a $900,000 home, the difference between 3% down ($27,000) and 20% down ($180,000) is enormous. Staying within the conforming limit opens up much lower down payment options.

PMI Costs

Both conforming and jumbo loans may require PMI with less than 20% down, but conforming loan PMI tends to be cheaper because the risk is partially offset by the government-sponsored backing.

Underwriting Standards

Conforming loans follow standardized Fannie Mae and Freddie Mac guidelines. This means consistent DTI limits, credit score requirements, and documentation standards. Jumbo loans are "portfolio" products, meaning each lender sets its own rules. Requirements are often stricter, with higher credit scores, lower DTIs, and more documentation required.

High-Cost Areas: Where Limits Are Higher

Not all expensive areas are created equal. The FHFA designates specific counties as "high-cost" based on local median home values. Here are some examples for 2026:

Counties at the maximum $1,209,750 limit:

• Los Angeles County, CA
• San Francisco County, CA
• New York City (all 5 boroughs), NY
• Honolulu County, HI
• Washington, D.C.
• San Juan County, WA

Counties with limits between standard and maximum:

• Many counties in Colorado, Massachusetts, Virginia, and Maryland have limits in the $800,000 to $1,100,000 range

To find the exact limit for your county, check the FHFA's lookup tool. Your lender should also be able to tell you whether your loan falls within the local conforming limit.

Strategies Around the Conforming Limit

If you're buying a home that pushes you just above the conforming limit, there are a few strategies worth considering:

Make a Larger Down Payment

If the home costs $860,000 and the conforming limit is $806,500, putting 7% down instead of 5% brings your loan amount to $799,800, which is under the limit. The extra 2% down ($17,200) saves you from jumbo loan rates and requirements.

Run the numbers to see if the interest savings from a conforming rate outweigh the cost of a larger down payment. Often, they do.

Use a Piggyback Loan (80/10/10)

A piggyback loan structure uses two loans: a first mortgage at the conforming limit and a second mortgage (like a home equity loan or line of credit) for the remainder. A common structure is 80/10/10, meaning 80% first mortgage, 10% second mortgage, and 10% down payment.

For example, on a $900,000 home:

• First mortgage: $720,000 (conforming, lower rate)
• Second mortgage: $90,000 (higher rate, but smaller balance)
• Down payment: $90,000

The blended rate might be comparable to a single jumbo loan, but the first mortgage benefits from conforming-loan pricing. Plus, you might avoid PMI on the first mortgage since it's at 80% LTV.

Wait for the Limit to Increase

If you're not in a rush and the home price is just slightly above the limit, the next year's limit increase might bring your loan into conforming territory. This is a gamble on both home prices and the FHFA's annual adjustment, but in recent years, the limit has increased consistently.

Conforming vs. FHA Loan Limits

Don't confuse the conforming loan limit with FHA loan limits. They're related but different:

FHA limits are lower in most areas, which is one reason FHA loans are more common for lower-priced homes and first-time buyers. In high-cost areas, the FHA limit matches the conforming limit.

Know the Limit Before You Shop

The conforming loan limit determines whether your mortgage gets the benefit of Fannie Mae and Freddie Mac backing, which generally means lower rates, lower down payments, and easier qualification. For 2026, that limit is $806,500 in most areas and up to $1,209,750 in high-cost markets.

If your home purchase pushes you near or just above the limit, it's worth exploring strategies to keep your first mortgage within conforming territory. Our jumbo vs conforming loan comparison breaks down exactly how the two loan types differ in rates, requirements, and qualification. The rate savings alone can add up to tens of thousands of dollars over the life of the loan. Talk to your lender about your options, and make sure you know the specific limit for the county where you're buying.