Definition
Conforming loan limit
The conforming loan limit is the maximum loan amount Fannie Mae and Freddie Mac can purchase or guarantee. The FHFA sets it each year, with a national baseline for one-unit homes and higher limits in designated high-cost counties. Loans above the applicable limit are jumbo loans and follow different rules.
The baseline limit for a one-unit property is $832,750 for 2026. In high-cost areas the limit is higher, up to a ceiling set by statute; two- to four-unit properties have higher limits as well. The FHFA publishes the figures every year, generally late in the year for the following year, and they usually track changes in home prices.
Worked example. A buyer wants a $1,000,000 home with 20% down, so the loan is $800,000. If that loan is at or below the limit for the county, it can be a conforming conventional loan. If the buyer instead puts 10% down and needs $900,000, the loan may exceed the baseline; whether it is jumbo depends on the county's high-cost limit. Adding to the down payment to stay under the line is a common strategy.
The limit matters because conforming loans are priced and underwritten to agency guidelines, while jumbo loans follow each lender's own rules on credit, down payment and reserves. FHA has its own separate limits, ranging from $541,288 in lower-cost areas to $1,249,125 in the highest-cost areas for one-unit homes. The jumbo loan calculator flags when a loan crosses the baseline.
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FAQ · 2 questions
Questions about Conforming loan limit
How often does the conforming loan limit change?
The FHFA reviews it every year and usually announces the next year's limits in late fall. When home prices rise, the limit generally rises too.
Is the conforming limit the same in every county?
No. There is a national baseline, and designated high-cost counties have higher limits. Check the county where the property is located.
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