Conforming Loan Limits: What They Are and Why They Matter

Every year, the Federal Housing Finance Agency announces new conforming loan limits. This number determines the maximum loan size that Fannie Mae and Freddie Mac can buy or guarantee.

Why it matters

Conforming loans are cheaper than non-conforming (jumbo) loans because Fannie and Freddie create a liquid secondary market. Lenders compete aggressively for these loans, which means lower rates for you.

The 2026 numbers

• Standard limit: $806,500 for most of the US.
• High-cost areas: Up to $1,209,750 in places where median home prices are high.
• Special limits: Alaska, Hawaii, Guam, and the US Virgin Islands have their own higher limits.

How limits are calculated

The FHFA uses the October-to-October change in average home prices from the HPI. If prices go up, limits go up. In 2026, home prices rose about 5%, so limits increased accordingly.

What's a high-cost area?

Counties where median home prices exceed the standard limit get higher limits — up to 150% of the standard. Think San Francisco, New York, Los Angeles, Washington DC, Boston, Seattle, Denver, and about 100 other counties.

How to find your limit

Fannie Mae has a loan limit lookup tool. Enter your county, and it tells you the exact limit. Do this before you start shopping — it affects what kind of mortgage you need.

The takeaway: Conforming loan limits dictate whether you can get a cheap, standard mortgage or need a more expensive jumbo. Check your county limit early in your search.