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FHFA Lifts 2026 Conforming Loan Limit to $832,750 as Price Growth Cools

The agency used its price index with expanded data inputs to set the higher cap.

FILE - Newly developed homes sit in a row in Eagleville, Pa., April 28, 2023. (AP Photo/Matt Rourke, File)
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Overview

  • The new baseline rises by $26,250, or about 3.25%, from the 2025 limit of $806,500 and takes effect on January 1, 2026.
  • High-cost areas can reach a ceiling of $1,249,125 for one-unit homes, with Los Angeles and New York counties at that level, while Alaska, Hawaii, Guam and the U.S. Virgin Islands have a baseline of $1,249,125 and a ceiling of $1,873,675.
  • FHFA said decelerating home-price gains informed the update, with the calculation built on its House Price Index and supplementary FHA and Cotality data.
  • The Federal Housing Administration will align its program loan limits with the new conforming amounts, potentially keeping more purchases in conventional rather than jumbo financing.
  • Major lenders moved early with higher in-house caps, with Rocket near $825,550 and UWM, Pennymac and CrossCountry around $819,000, reflecting competition as national appreciation slows and regional trends diverge.