FHFA Sets 2026 Conforming Loan Limits
On November 3, 2023, the Federal Housing Finance Agency (FHFA) announced updates to the conforming loan limits (CLLs) for 2026. This adjustment reflects the increase in average home prices across the United States. The new baseline CLL for a one-unit property stands at $832,750, marking a $26,250 increase from the 2025 limit.
Understanding the Conforming Loan Limits
The FHFA adjusts the conforming loan limit values annually under the Housing and Economic Recovery Act (HERA). This year’s increase is directly associated with rising home prices. According to the latest report, the FHFA House Price Index (FHFA HPI) showed a 3.26% rise in home values from the third quarter of 2024 to the third quarter of 2025.
High-Cost Areas
In regions where 115% of the local median home value surpasses the baseline, higher loan limits apply. The ceiling for these high-cost areas is set at 150% of the baseline CLL, reflecting local housing market conditions. The new ceiling for one-unit properties will be $1,249,125.
- New Baseline CLL: $832,750
- Increase from 2025: $26,250
- Ceiling Loan Limit for High-Cost Areas: $1,249,125
Special Provisions for Certain U.S. Territories
Specific loan limits are also established for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. For these locations, the baseline loan limit and ceiling will be:
| Property Type | Baseline Loan Limit | Ceiling Loan Limit |
|---|---|---|
| One-Unit Properties | $1,249,125 | $1,873,675 |
Due to an increase in property values, these new limits will impact all but 32 counties or county equivalents across the U.S.
Conclusion
The adjustments made to the conforming loan limits are vital for addressing the evolving housing market. They help ensure borrowers have access to adequate financing options. For more information, visit El-Balad’s coverage on this topic.
