Conforming Loan Limits for 2026

What Is a Conforming Loan?

A conforming loan is a conventional loan that meets certain standards put forth by Fannie Mae and Freddie Mac. These are government-backed entities that purchase the majority of U.S. mortgages. In 2024, 64% of buyers who took out a home loan financed their purchase with a conventional loan, according to the National Association of Realtors (NAR).

Every year, the Federal Housing Finance Agency (FHFA) releases new conforming loan limits—and this determines the maximum loan sizes that Fannie Mae and Freddie Mac can purchase. Mortgages that exceed conforming loan limits are called jumbo loans.

Learn more: Pros and Cons of Conforming Loans

New Conforming Loan Limits for 2026

Conforming loan limits vary by county. Roughly 95% of counties qualify for the baseline loan amount on single-family homes, but the limit could be higher if you live in an expensive area. If you're interested in a conventional mortgage, the FHFA maintains a database of county-specific conforming loan limits.

Source: Federal Housing Finance Agency

Conforming loan limits are based on home prices throughout the United States. Between the third quarter (Q3) of 2024 and Q3 2025, home prices increased by 3.26%. As a result, the FHFA bumped up the baseline conforming loan limit for a single-family home by the same percentage.

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2026 Conforming Loan Limits in High-Cost Areas

Conforming loan limits are higher in areas where 115% of the local median home value surpasses the baseline loan limit. In pricier counties, like Los Angeles and Nantucket, the ceiling is 150% of the baseline limit.

Different conforming loan limits also apply to single-family homes in high-cost areas like Alaska, Hawaii, Guam and the U.S. Virgin Islands. In 2026, the baseline loan limit in these places is $1,249,125. See below for a sampling of the most populated high-cost areas with higher loan limits.

2026 Conforming Loan Limits in High-Cost Areas

Source: Federal Housing Finance Agency

Examples of Conforming Loan Limits

Let's say you want to buy a $1 million home in a high-cost area like Routt County, Colorado, which is part of the Steamboat Springs metropolitan area. The county's 2026 conforming loan limit, which is $1,089,050, makes it possible to qualify for a conventional mortgage—assuming you meet all the other eligibility criteria. You'll likely need a:

• FICO^® Score^Θ that's at least 620 to 660
• Minimum 3% down payment
• Debt-to-income ratio (DTI) that doesn't exceed 45% to 50%

But things are different in nearby Jackson County, where the conforming loan limit is $832,750. Here, you'll need a non-conforming mortgage to finance a home that exceeds that amount. Interest rates are typically higher on these types of loans.

Learn more: Can I Buy a House With a 650 Credit Score?

Alternatives to Conforming Loans

If the price of your dream home exceeds your area's conforming loan limits, don't lose hope. One of the following home loans might be an option:

• Jumbo loan: This is often the go-to loan option when financing a pricier home. You'll likely need a minimum credit score of 700 to 720 and a down payment of at least 10%. You might have trouble qualifying if you have a DTI that exceeds 36%. Compare current jumbo mortgage rates to find out what kind of interest rate you could expect with a jumbo loan.
• Piggyback loan: This option involves taking out two mortgages. With the first, you'll make a 10% down payment and finance 80%. Then you'll cover the remaining 10% using a second mortgage like a home equity loan or line of credit. A piggyback loan can help you avoid a jumbo mortgage and private mortgage insurance.
• Interest-only loan: Your initial payments will only apply to your mortgage interest. During this time, you won't be chipping away at your principal amount borrowed. But after that, your monthly payment will increase to account for interest and your principal. With this kind of loan, you may end up paying more interest when compared to a conventional loan.

Learn more: What Type of Mortgage Loan Is Best?

The Bottom Line

Knowing the conforming loan limit in your area can help you understand your financing options. You can then determine how much to save for a down payment—and take steps to improve your credit before applying. You can get your FICO^® Score and credit report for free from Experian to see where you stand.