Will Conventional Loan Limits Increase in 2026?

Current estimates show the 1-unit conventional loan limit rising 4.46% from $806,500 in 2025 to $842,450 in 2026.
Each year, the Federal Housing Finance Agency (FHFA) reviews home price changes over the previous year to determine conventional loan limits for the upcoming year.
For 2026, the FHFA will review its House Price Index, or the “FHFA HPI®”, to determine new limits. Will those limits rise from 2025 levels?
Current 2025 Conventional Loan Limits
Units | 2025 Standard Limits | 2025 High-Cost Limits |
---|---|---|
1 | $806,500 | $1,209,750 |
2 | $1,032,650 | $1,548,975 |
3 | $1,248,150 | $1,872,225 |
4 | $1,551,250 | $2,326,875 |
2026 Conventional Loan Limit Forecast
Units | 2026 Standard Limits Estimate | 2026 High-Cost Limits Estimate |
---|---|---|
1 | $842,450 | $1,263,675 |
2 | $1,078,675 | $1,617,775 |
3 | $1,303,775 | $1,955,525 |
4 | $1,620,375 | $2,430,225 |
How We Estimated 2026 Conventional Conforming Limits
To arrive at estimated 2026 loan limits, we plugged the most recent data available into the same formula used by FHFA.
Each year, The FHFA determines conforming loan limits by comparing year-over-year home price changes. Specifically, it compares third-quarter home prices from the previous year to third-quarter prices for the current year to set next year’s loan limits.
For example, the FHFA reviewed home price changes from Q3 2023 to Q3 2024 to arrive at 2025 conforming loan limits.
Will 2026 Loan Limits Increase?
As of this writing, no data exists for the third quarter of 2025. It should be available in November.
However, we can gain insights by looking at year-over-year data for Q1 (and Q2, when data is published).
According to FHFA, 2025 loan limits were determined as such:
2025 Percentage change
= (2024 Q3 HPI – 2023 Q3 HPI) / 2023 Q3 HPI
= (407.71 – 387.13) / 387.13
= 0.0532 (5.32%)
This calculation determined that the conforming loan limit would rise by about 5.32%
We arrive at our 2026 conventional loan limit estimate using the same formula, but using 2025 Q1 data (as we await Q2 data to be published).
2026 Percentage change
= (2025 Q1 HPI – 2024 Q1 HPI) / 2024Q1 HPI
= (417.01 – 399.22) / 399.22*
= 0.0446 (4.46%)
If 2026 loan limits were based on 2025 Q1 data, the conforming loan limit would increase 4.46%, from $806,500 in 2025 to $842,450 in 2026.
Under this same logic, high-cost loan limits would increase from $1,209,750 in 2025 to roughly $1,263,675 in 2026 (high-cost limits are set at 150% of the standard limit).
How Much Did 2025 Loan Limits Increase?
Conventional loan limits increased in 2025 as follows:
$766,550 in 2024 → $806,500 in 2025
According to FHFA, 2025 loan limits were determined as such:
Percentage change:
= (2024 Q3 HPI – 2023 Q3 HPI) / 2023 Q3 HPI
= (409.43 – 389.14) / 389.14
= 0.0521 (5.21%)
This calculation determined that the conforming loan limit would rise by about 5.2%.
Related: Will FHA Loan Limits Increase in 2025?
When Can Applicants Start Using 2026 Loan Limits?
Most lenders will begin accepting 2026 loan limits as soon as they are announced by FHFA, some even earlier. Borrowers typically may take advantage of higher 2026 limits starting in late November 2025, but check with your lender on their policy.
Can 2026 Conventional Loan Limits Decrease?
In a word, no. The FHFA follows rules that say conforming loan limits may not decrease even if the FHFA home price index decreases.
Instead, conventional loan limits would remain the same until home prices rebounded to their previous highs. Loan limits would rise only when home prices exceeded previous levels.
Should You Wait Until 2026?
Home prices are continuing to rise despite high rates. Waiting until 2026 to capture a larger conventional loan limit could end up costing you.
It might be better to use a jumbo loan.
You may can also combine a HELOC with a conventional loan if you qualify.
For example, you’re looking for a $1,000,000 home at current 2025 limits:
Home Price | $1,000,000 |
---|---|
Down Payment | $100,000 |
Remaining Loan Needed | $900,000 |
Current Conforming Limit | $806,500 |
Shortfall/HELOC Amount | $93,500 |
This structure keeps your loan in conventional territory, giving you more lenient underwriting compared to most jumbo loan programs.
Then, there’s a potential to refinance into a conventional loan in 2026 if loan limits increase or rates drop.
Conventional Loan Limits History
Year | 1-Unit | Increase |
---|---|---|
2026 (est.) | $842,450.00 | 4.5% |
2025 | $806,500.00 | 5.2% |
2024 | $766,550.00 | 5.6% |
2023 | $726,200.00 | 12.2% |
2022 | $647,200.00 | 18.0% |
2021 | $548,250.00 | 7.4% |
2020 | $510,400.00 | 5.4% |
2019 | $484,350.00 | 6.9% |
2018 | $453,100.00 | 6.8% |
2017 | $424,100.00 | 1.7% |
2016 | $417,000.00 | 0.0% |
2015 | $417,000.00 | 0.0% |
About Conventional Loans
Most conventional loans are regulated by Fannie Mae and Freddie Mac. Applicants need a credit score of at least 620, but get the best rates and mortgage insurance costs with higher credit. Down payments can be as little as 3%, lower than the FHA minimum. Because of efforts of the Fannie and Freddie to expand availability of its products, conventional loans have become a favorite of first-time buyers who may not have qualified in the past.
*Note that loan limits are based on FHFA’s expanded-data indexes which is why the above figures differ from commonly-cited HPI numbers.
