At a Glance:

• FHFA announced the 2026 baseline conforming loan limit: $832,750, up $26,250 from 2025.
• High-cost area ceiling set at $1,249,125.
• Increase reflects 3.26% annual home price appreciation, per FHFA’s House Price Index.
• FHFA also reported home prices rose 2.2% year-over-year and 0.2% quarter-over-quarter in Q3 2025.
• Mortgage rates remain near year-to-date lows, and inventory is up more than 15% year-over-year.

The Federal Housing Finance Agency (FHFA) recently announced the 2026 conforming loan limits (CLLs), which set the maximum loan size eligible for purchase by Fannie Mae and Freddie Mac.¹ These limits matter because they determine which loans qualify as “conforming” versus “jumbo,” impacting financing options for homebuyers nationwide.

2026 Conforming Loan Limits 

For most of the country, the baseline limit for one-unit properties will rise to $832,750, an increase of $26,250 from 2025. In high-cost areas, the ceiling will be $1,249,125, and in certain U.S. territories such as Alaska and Hawaii, the ceiling is $1,873,675. These adjustments reflect a 3.26% increase in average U.S. home prices, based on FHFA’s House Price Index.²

FHFA’s latest report, released the same day, shows home prices rose 2.2% year-over-year and 0.2% quarter-over-quarter in Q3 2025.³ These trends underscore why annual adjustments are necessary to keep pace with market conditions.

“Annual adjustments to conforming loan limits help ensure borrowers have access to conventional financing options that reflect current market conditions,” said Brett Hively, Senior Vice President and Mortgage Capital Markets and Financial Strategist at Ameris Bank. “With home prices continuing to rise, these changes support affordability and provide flexibility for homebuyers in both standard and high-cost areas.”

In October, Ameris Bank—like many lenders—proactively increased its internal loan limits in anticipation of FHFA’s annual adjustment.⁴ This early move helped buyers access higher limits ahead of the official announcement. With FHFA’s release now confirming the 2026 limits, Ameris Bank is fully aligned with the new standards.

What About FHA?

FHA loan limits—especially important for first-time buyers and those using lower down payments—are expected soon from the U.S. Department of Housing and Urban Development (HUD). These limits vary by county and typically adjust based on local housing costs, providing additional financing options for buyers heading into 2026.

What Higher Limits Mean in Today’s Market

Mortgage rates are near their lowest levels of the year, with the average for a 30-year conforming loan at 6.21% and the 30-year jumbo loan average at 6.42% as of December 1.⁵ Higher conforming limits give buyers more flexibility to stay within conventional financing, but jumbo programs remain a strong option for those purchasing above the new thresholds. For anyone planning to buy or sell in the coming year, understanding these changes provides valuable context for conversations about affordability and loan strategies.


Sources:
¹ https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026
^2,3 https://www.amerisbank.com/Personal/Learn/Financial-Articles-Advice/Buying-A-Home/Mortgage-Monitor-October-8
⁴ https://www.fhfa.gov/news/news-release/u.s.-house-prices-rise-2.2-percent-year-over-year-up-0.2-percent-quarter-over-quarter
⁵ https://www2.optimalblue.com/obmmi


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.