BIG NEWS: 2026 Conforming Loan Limits Increased to $832,750

by Timothy Chase

— Just Announced Today

Published: November 25, 2025
Author: 719 Lending Inc. – Mortgage Market Update
For the latest mortgage rates and market insights, visit our dedicated Rates page.

The Federal Housing Finance Agency (FHFA), based in Washington, has officially announced the 2026 conforming loan limits, and the numbers are higher than expected. The new baseline conforming loan limit for one-unit homes in most U.S. counties is $832,750, a $26,250 increase from the 2025 limit of $806,500. The FHFA today announced these changes, emphasizing the timeliness and impact on the mortgage market. The announcement was made on November 25, 2025, marking a significant update for the housing market.

Even better: many major lenders are honoring the new limits starting today, meaning buyers and refinancers can take advantage immediately — weeks before the January 1, 2026 official start date. The new limits apply to loans delivered to and acquired by the Enterprises—Fannie Mae and Freddie Mac—on or after January 1, 2026, but some lenders may implement them early for applications submitted now. These limits are established by the FHFA based on home price data and are adjusted annually to reflect changes in average home prices and market conditions. The Enterprises set and acquire conforming loans according to these updated limits. For more details on the 2026 conforming loan limits, refer to the official FHFA resources.

For questions or personalized assistance, contact 719 Lending today.

2026 Conforming Loan Limits (Official FHFA Announcement)

The following chart shows the 2026 conforming loan limits for different property types and area classifications in Colorado. If you’re a veteran or interested in how VA disability pay can impact your ability to purchase a home, see our overview of VA Disability Pay in Colorado for more details.

Property Units	Standard Areas	High-Cost Areas	Year-Over-Year Change
1-Unit	$832,750	$1,249,125	+$26,250
2-Unit	$1,066,250	$1,599,375	+$33,750
3-Unit	$1,288,800	$1,933,200	+$40,800
4-Unit	$1,601,750	$2,402,625	+$50,750

In Colorado (CO), loan limits can vary significantly by co (county), so it’s important to check your specific CO co for the applicable limit.

The applicable loan limit depends on both the property type and the location, with high-cost areas qualifying for higher limits than standard areas. These conforming loan limits are published annually by the U.S. Federal Housing Finance Agency (FHFA) and vary by geographic location to reflect local market conditions.

Special Statutory Areas (Higher Ceilings)

Alaska, Hawaii, Guam, and the U.S. Virgin Islands may qualify for higher limits — up to $1,873,675 for one-unit properties.

Why This Matters Right Now

As of November 26, 2025, lenders including UWM, Rocket Mortgage, Pennymac, and others are immediately adopting the 2026 loan limits. Borrowers can now lock in current interest rates with these new limits, helping to secure favorable terms before rates potentially change. Interest rates play a significant role in the urgency for both buyers and those looking to refinance, as they directly impact the affordability of mortgages and home loans. The new limits affect a range of loan types, including conventional loans, FHA loans, and other home loans, by increasing the maximum amount you can borrow without moving into jumbo loan territory. This change benefits buyers by allowing them to purchase homes at higher price points without needing a jumbo loan, which often comes with stricter requirements. It’s important to note that conventional loans are subject to these new conforming limits, while jumbo loans apply to amounts above the threshold. FHA loans are also impacted, as their maximum loan amounts are adjusted in response to the new limits, providing more flexibility for a variety of borrowers.

✔ More buyers qualify for conforming loans instead of jumbo

Jumbo loans typically require:

Higher credit scores
More reserves
Larger down payments
Tougher underwriting

With higher conforming limits, many borrowers who were previously over the threshold now fall into lower-rate, easier-approval conforming territory.

✔ Bigger purchasing power for fall/winter buyers

Homebuyers who were $5k–$50k above the 2025 limits can now qualify without changing their budget.

✔ Refinancers benefit too

Borrowers with jumbo loans may now refinance into conforming pricing — which often means better rates and fewer reserve requirements.

Who Benefits the Most?

The new limits benefit buyers in most counties across the U.S., making homeownership more accessible for a wide range of borrowers. Colorado conforming loan limits for 2025 have also increased, providing greater flexibility for homebuyers in the state. This increase is especially impactful for:

Borrowers in high cost locations and high cost area regions, where home prices often exceed the baseline conforming loan limit, resulting in higher loan limits to match local market conditions.
Homebuyers in areas where the median home price exceeds the standard limit, allowing them to qualify for conforming loans rather than needing a jumbo loan.
First-time homebuyers who may have previously struggled to find homes within the old limits.
Buyers looking to purchase in competitive real estate markets with elevated property values.

🏡 Move-up buyers

Especially in higher-price markets where homes often exceeded the 2025 limits.

📈 Buyers in high-cost counties

California, Colorado, Florida, New York, New Jersey, D.C. metro, Seattle, and Boston see even larger ceilings at $1,249,125. In Colorado, high-cost counties such as Denver, Boulder, Adams, and Eagle have elevated loan limits to reflect higher property values. These limits can vary significantly across different Colorado counties, so it’s important for homebuyers to check the specific county loan limits when considering their options.

🏘️ Small multifamily investors

Big increases to the 2–4 unit limits improve financing options for:

House hackers
Long-term rental investors
VA-eligible buyers (one unit must be owner-occupied)

🎖 Veterans with partial entitlement

VA borrowers with full entitlement still have no loan limit, but those with partial entitlement benefit directly from these FHFA increases.

What You Should Do Today

Because lenders are honoring the new limits now, you can take immediate action:

1️⃣ Check your updated buying power

If you were near the old limit, your pre-approval may have just increased overnight.

2️⃣ Ask your lender: “Can I use the 2026 limits now?”

Most loans not yet locked can be updated immediately.

3️⃣ Use the official FHFA loan limit lookup tool

Search by county to see your exact 2026 limit:
fhfa.gov/loanlimit

4️⃣ Re-run any previously denied or borderline scenarios

Borrowers declined for “loan amount too high” under 2025 limits may now qualify.

Why FHFA Increased the Limits

According to FHFA, the 2026 conforming loan limits reflect a 3.26% rise in U.S. home prices between the third quarter of 2024 and the third quarter of 2025 (based on the FHFA House Price Index). This increase is compared to the prior year’s limits, which were set based on earlier market conditions. Rising home values pushed the baseline and high-cost ceilings upward in nearly every county across the country, not just in Colorado. States like Idaho also see changes in their conforming loan limits as a result of these adjustments. Notably, the 2026 limit is 63% higher than the 2020 limit of $510,400, reflecting the significant growth in home prices over the past six years. If you’re considering an FHA loan, it’s important to understand allowable fees and closing costs.

Only 32 counties will not see an increase in 2026. This means that the vast majority of U.S. counties will benefit from higher conforming loan limits, driven by rising home values across the nation. Due to these rising home values, the conforming loan limit values will be higher in all but 32 U.S. counties or county equivalents.

Bottom Line

This is one of the most impactful conforming loan limit increases in recent years — and it’s effective right now for many lenders.
The new baseline of $832,750 (and $1,249,125 in high-cost areas) instantly expands purchasing power and removes thousands of buyers from jumbo financing.

If you’ve been on the fence, out of range, or told you were “just over the limit,” today is the day to re-run your numbers.