The Federal Housing Finance Agency (FHFA) has announced an increase in the 2026 conforming loan limits, meaning buyers can borrow more while still qualifying for conventional financing. Starting January 1, 2026, the baseline loan limit for a one-unit home will rise to $832,750—up from $806,500 in 2025. In high-cost areas, that number jumps to $1,249,125.
What This Means for You
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More Buying Power: You can finance a higher-priced home without moving into a jumbo loan.
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Easier Qualification: Conforming loans often come with more flexible down payment options and lower interest rates.
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Local Advantages: Certain counties—especially those with higher home values—may qualify for even higher limits.
Why the Change?
Each year, FHFA adjusts loan limits based on average U.S. home price growth. In 2026, home prices increased 3.26%, prompting the same rise in conforming limits.
When Does It Take Effect?
The new limits apply to loans originated or closed on or after January 1, 2026.
What’s Next
If you’ve been waiting for the right time to buy—or to move up to your next home—these new limits may open the door. Talk to your First Home Mortgage loan officer today to see how the new 2026 limits can help you reach your goals.
