Housing News

Big News for Homebuyers and Homeowners: Here are the New Loan Limits for 2026

With home prices continuing to rise, the federal government is set to increase the loan limits for the mortgages that most people use to buy a home or refinance their existing mortgage. This will make it easier for buyers to get loans for pricier properties.

The Federal Housing Finance Agency announced that conforming loan limits for Conventional loans in much of the country will increase from $806,500 in 2025 to $832,750 for 2026. That’s an increase of more than $26,000.

The limits apply to loans backed by Fannie Mae or Freddie Mac. These are the government-sponsored enterprises that back most mortgages made in the U.S. each year.

The new limits go into effect on Jan. 1, 2026.

Buyers in what the FHFA deems “high-cost” areas may be able to borrow even more. These are counties where 115% of the local median home value is above the baseline loan limit amount.

These areas include notoriously expensive markets like New York City and California’s Silicon Valley. The maximum loan limit for these areas is higher than it is in the rest of the country.

For Conventional loans in the high-cost areas, the 2026 loan limit is $1,249,125.

These limits are based on national home prices. Under federal law, limits for loans backed by Fannie or Freddie are based on the FHFA Home Price Index. The index showed that home prices increased by 3.26% from the third quarter of 2024 to the third quarter of 2025.

As a result, loan limits will increase by the same percentage.

This will be the 10th straight year that Conventional loan limits have increased.

Why loan limits are important

An increase in the loan limits will be helpful to homebuyers and homeowners alike.

Conventional loans insured by Fannie and Freddie generally offer lower down payments and potentially lower mortgage rates compared to jumbo loans. Jumbo loans are mortgages that are above the Conventional loan limit amount.

Homeowners who used a jumbo loan to purchase their home may also be able to refinance into a Conventional loan, which could save them money over the life of their loan.

Due to the home prices in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, these areas have different loan limits as well. In these areas, the Conventional loan limit will vary from $1,249,125 to $1,873,675.

To check out the loan limits by county, click here.