Nov '25 (edited) • Real Estate News
🏡 Real Estate Update: Loan Limits Are Going Up
The federal agency that oversees Fannie Mae and Freddie Mac is raising the “conforming loan limit” again for 2026. (https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026)
In simple terms, this is the maximum loan size that can still be treated as a standard conforming loan instead of a jumbo loan.
Key points:
- The baseline conforming loan limit for 1-unit homes will move into the low–$800,000s in most areas
- High-cost areas will have limits over $1.2 million
- This change is happening because average home prices have continued to rise
Why this matters:
- Most first-time buyers won’t shop near those limits, especially in more affordable markets
- But higher limits help keep more homes in the standard “conforming” box instead of pushing buyers into jumbo loans
- Conforming loans usually have more flexible guidelines and more program options
How to use this:
- If you are shopping in a higher price range, ask your lender what the conforming limit is in your county
- Find out at what price point your loan would become “jumbo”
- For most entry-level buyers, this is good background info, but your focus should still be on budget, DTI, and down payment
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🏡 Real Estate Update: Loan Limits Are Going Up
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