The time has come – new conforming loan limits have just been released by the Federal Housing Finance Agency (FHFA). Fannie Mae and Freddie Mac are legally bound to purchase single-family mortgages with origination balances below a specific amount, known as the Conforming Loan Limit. If a loan exceeds this limit, it is known as a jumbo loan.
The Conforming Loan Limit will increase in 2026 to $832,750 for single-family dwellings (an increase of $26,250 from 2025). Desktop Underwriter (DU) and Loan Prospector (LP) will be updated on or after December 7th.
Conforming loans typically offer more favorable terms, including lower interest rates and less stringent qualification criteria, than jumbo loans. Homeowners with jumbo loans can potentially reduce their monthly payments and gain greater flexibility by refinancing into conforming loans. This is particularly advantageous in areas with high housing costs, where property values often surpass traditional conforming loan limits.