Written by: Internal Analysis & Opinion Writers
The Federal Housing Finance Agency (FHFA) has announced that the baseline conforming loan limit (CLL) for one-unit properties will increase to **$832,750** in 2026, up from $806,500 in 2025. This adjustment reflects the annual rise in U.S. home prices.
The increase is mandated by the Housing and Economic Recovery Act (HERA), which requires that the loan limits be recalculated each year based on the change in the national average home price. According to the FHFA’s House Price Index, U.S. home values rose by approximately 3.26% between the third quarters of 2024 and 2025.
In high-cost areas—defined as counties where 115% of the local median home value exceeds the baseline limit—the new ceiling for conforming loans on one-unit properties will be **$1,249,125**, which is 150% of the new baseline limit.
Certain U.S. territories, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands, qualify for even higher loan limits due to special statutory provisions. In these areas, the one-unit loan ceiling will be set at **$1,873,675**.
As a result of rising home values nationwide, all but 32 counties across the United States will see increases in their 2026 conforming loan limits. These new values are designed to ensure continued access to conventional mortgage financing in a shifting market.
The revised limits take effect on **January 1, 2026**, and apply to all loans acquired by Fannie Mae and Freddie Mac on or after that date. Borrowers and lenders are encouraged to confirm the new limits applicable to their specific counties using FHFA’s published reference materials.
