FHFA Raises Conforming Loan Limit to $832,750 in 2026

The Federal Housing Finance Agency announced Tuesday that it will raise the maximum size of home loans eligible for government-backed guarantees, reflecting ongoing increases in U.S. housing prices. Starting in 2026, Fannie Mae and Freddie Mac will be able to purchase single-family home loans up to $832,750 in most parts of the country, a 3.3 percent increase from the 2025 limit.

The adjustment aims to align the conforming loan limits with current market conditions. FHFA, which regulates Fannie Mae and Freddie Mac, sets these caps annually based on changes in national home values. According to the agency's House Price Index, average U.S. home prices rose 3.3 percent in the July-to-September quarter of 2025 compared with the same period a year earlier, though the pace of growth has slowed from previous years.

Fannie Mae and Freddie Mac play a central role in the mortgage market by purchasing loans from banks and other lenders, providing guarantees against borrower defaults. These loans are then packaged into securities and sold to investors, which helps keep lending costs down for consumers. Loans below the conforming limit benefit from this government support, making them easier...