Conforming loan limits define the maximum loan size eligible for purchase by Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that back most conventional mortgages in the United States. Loans within these limits are “conforming” and have access to standard conventional loan programs. Loans above the limits are “jumbo” loans with different requirements.
2026 Baseline Conforming Loan Limits
The Federal Housing Finance Agency (FHFA) adjusts conforming limits annually based on changes in average home prices.
For most U.S. counties, the baseline single-family conforming limit was $806,500 in 2025 and may have increased for 2026 based on home price changes. Always verify the current limit at FHFA.gov or with your lender, as these are updated in November of each year.
By unit count (2025 baseline, confirm 2026 update):
| Property type | Baseline limit |
|---|---|
| 1-unit (single-family) | $806,500 |
| 2-unit (duplex) | $1,032,650 |
| 3-unit (triplex) | $1,248,150 |
| 4-unit (fourplex) | $1,551,250 |
Multi-unit limits are important for house-hackers: buyers who purchase a 2–4 unit property, live in one unit, and rent the others can use residential (not commercial) financing with these higher limits.
High-Cost Area Limits
In counties where median home prices significantly exceed the national baseline, FHFA designates “high-cost areas” with elevated conforming limits — up to 150% of the baseline.
High-cost area maximum (2025 baseline, confirm 2026):
- Single-family: $1,209,750
- Areas including Los Angeles, Orange, San Francisco Bay Area (most counties), New York City metro, Seattle/King County, Denver, and others
A list of all high-cost counties and their specific limits is published annually by FHFA and updated at HUD’s loan limits page.
Why Conforming Limits Matter
Rate pricing: Conventional conforming loans have access to the deepest secondary market and typically carry the lowest available rates for a given borrower profile. Jumbo loans, while widely available, often carry slightly higher rates (though the spread narrows when jumbo demand is high).
Down payment requirements: Conforming loans allow down payments as low as 3%–5% with standard programs. Jumbo loans typically require 10%–20% down, with some lenders requiring more.
Credit requirements: Conforming underwriting follows Fannie/Freddie guidelines. Jumbo loans are held by or sold to private investors with their own, sometimes stricter, criteria — typically requiring 700+ credit scores and thorough income documentation.
Portfolio flexibility: Conforming loans are more easily sold and transferred between servicers. This doesn’t directly affect borrowers, but it means lenders are more willing to originate them at competitive terms.
FHA Loan Limits: Related but Different
FHA also publishes annual loan limits, set by HUD rather than FHFA. FHA limits are set as a percentage of conforming limits and vary by county.
In most areas, FHA limits are below the conforming limit. In high-cost counties, FHA limits can equal the conforming high-cost limit. In a handful of the most expensive markets (notably Honolulu and some California counties), FHA limits may be slightly lower than conventional high-cost limits.
For buyers using FHA financing, verify the FHA loan limit for your specific county separately from the conventional conforming limit — they’re different numbers.
Jumbo Loans: Key Differences
If your loan amount exceeds the applicable conforming limit, you’re in jumbo territory:
- Rates: Usually within 0.125%–0.5% of conforming rates; sometimes below in certain market conditions
- Down payment: Typically 10–20%; some lenders offer 10% down jumbo with strong compensating factors
- Reserves: Jumbo lenders typically require 6–18 months of PITI in verified liquid assets post-closing
- Credit: Generally 700+ minimum; 720+ for best pricing
- Income documentation: May require 2+ years of tax returns even for salaried borrowers; self-employed borrowers face thorough scrutiny
- Loan caps: Individual lenders set their own jumbo limits; some stop at $2M, others go higher for qualified borrowers
Checking Your County’s Limit
With purchase prices above the baseline conforming limit ($806,500+ in most areas, higher in high-cost counties), verify the exact limit for your target county before assuming you’ll need jumbo financing. In California or other high-cost markets, a $1,100,000 loan may be conforming in your county.
Your lender can confirm the limit for any address in their pre-approval process. The Mortgage Calculator on LendingPulse can model your payment regardless of loan type — enter the loan amount and rate quoted by your lender for your specific loan size.