Conforming Loan Limits Explained
October 23, 2026
Conforming loan limits are the maximum loan amounts that Fannie Mae and Freddie Mac can buy or back. The Federal Housing Finance Agency (FHFA) sets them every year, usually announcing the next year's limits in late November. There's a baseline limit that applies in most of the country, a higher limit in high-cost counties, and higher limits again for two-to-four-unit properties. A loan above your county's limit is a jumbo loan.
How the limits are set. Under the Housing and Economic Recovery Act of 2008, FHFA adjusts the baseline limit each year to reflect the change in average U.S. home prices. In counties where local home values are higher than the baseline, the limit is raised, up to a ceiling set by law. Alaska, Hawaii, Guam and the U.S. Virgin Islands have their own higher limits. Limits are set by county, so two nearby homes can fall under different limits if they're in different counties. You can look up every county's current limit on FHFA's website and on Fannie Mae's loan limit lookup tool.
Why the limit matters. Loans at or under the limit can follow Fannie Mae and Freddie Mac guidelines, which often allow smaller down payments, standardized documentation and widely available pricing. Loans between the baseline limit and a high-cost county's limit are called high-balance conforming loans and may have their own pricing adjustments. Above the county limit, you're in jumbo territory, where lenders set their own credit, equity and reserve rules. FHA loan limits are set separately by HUD, though they're tied to the conforming limits, and VA loans don't have a loan limit for borrowers with full entitlement, although lenders may set their own maximums. The limit applies to the loan amount, not the purchase price, so your down payment affects which side of the line you're on.
What to check and quick answers. Look up your county's current limit and the limit for the number of units you're buying. If your loan amount is close to the limit, ask a lender to price both a conforming and a jumbo version, or a conforming first mortgage plus a second mortgage. Do limits ever go down? Under HERA, the baseline limit doesn't drop when average home prices fall, and later increases wait until prices recover. When do new limits take effect? Usually on January 1, though some lenders start accepting applications at the new limits earlier. Does a higher limit mean you'll qualify for more? No. The limit is a ceiling on loan size, not a measure of what you can afford. Do conforming limits apply to refinances? Yes. The same county limit applies to the new loan amount, which matters for cash-out refinances. Where should you look? Use FHFA's official data rather than third-party charts, which can be out of date.
Conforming loan limits cap the loans Fannie Mae and Freddie Mac can buy, set yearly by FHFA by county and number of units. Check your county's current limit, compare your loan amount (not the price) against it, and price conforming and jumbo options if you're near the line. Sources: FHFA conforming loan limit announcements and map (fhfa.gov); Housing and Economic Recovery Act of 2008; Fannie Mae loan limit lookup. General education only. LoFi Rate is an independent matching service, not a lender or mortgage broker. If you request a match, your information is shared with independent mortgage professionals licensed in your state.