2027 Conforming Loan Limits: What to Expect This November

Every November, the Federal Housing Finance Agency announces the conforming loan limit for the year ahead — the largest loan Fannie Mae and Freddie Mac will purchase. For 2026, the baseline limit on a one-unit property is $832,750, with a ceiling of $1,249,125 in designated high-cost areas.

How the limit gets set:

• The Housing and Economic Recovery Act requires FHFA to adjust the baseline annually by the change in average U.S. home prices
• The calculation uses FHFA’s House Price Index, comparing third-quarter figures year over year
• The 2026 increase reflected roughly 3.3% home price growth — a slowdown from the 5%-plus increases of the two prior years
• High-cost ceilings are set at 150% of the baseline, applied where 115% of the local median home value exceeds it

Who the announcement actually affects:

• Buyers near the threshold, since a loan just above the limit becomes a jumbo loan with stricter credit, reserve, and down payment requirements
• Homeowners currently in jumbo loans, who may become conforming-eligible on a refinance if the limit rises past their balance
• Buyers of two- to four-unit properties, which carry meaningfully higher limits than single-family homes
• Anyone shopping in the roughly 5% of counties designated high-cost, where the ceiling matters more than the baseline

A higher limit expands access to conventional financing without any change to your own finances — the same loan amount that required jumbo underwriting one year can be conforming the next. If you’re shopping near the current threshold, the November announcement is worth watching before committing to a loan structure.