Good news for homebuyers, real-estate agents and lenders: For 2026, the standard conforming loan limit has been raised to $819,000 for single-family homes in most of the U.S. This increase opens up new opportunities to stay in the conforming (vs. jumbo) loan space — and it could be a key selling point for clients and listings in markets like ours.
Here’s what you and your clients need to know — and how you can leverage this change.
Up until now, many buyers were bumped into “jumbo” territory (loans above the conforming limit) — which often comes with higher interest rates, stricter underwriting, larger down payments, more documentation, and often more risk for the lender.
With the limit rising to $819k (for a one-unit single-family home in most areas), many more homes will qualify under the “conforming” label.
Conforming loans are backed by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac — in many cases meaning smoother processing, better pricing, and more certainty.
So, for buyers and sellers: This means more flexibility, potential cost savings, and more marketable homes.
Despite some cooling in certain regions, median home prices remain high (e.g., median U.S. price around ~$435,000 in recent data). In many metropolitan markets, homes routinely exceed $500k-$700k, and in high-cost regions well beyond that. What this change means is that some homes that had required a jumbo loan might now be eligible for a conforming loan — which is meaningful in competitive markets.
When a buyer crosses a loan threshold into “jumbo” territory:
Interest rates often increase by a fraction of a percent (which adds up over 30 years).
Down payments may need to be larger.
Lenders may require higher credit scores, tighter debt-to-income ratios, more reserves.
By expanding the conforming limit, the barrier for “jumbo” starts is moved higher — giving more buyers the advantage of the less-stringent conforming criteria.
For agents representing sellers: You can point out to prospective buyers that the home qualifies under the new higher conforming limit — which means more lenders may be able to offer better terms, more buyers will have financing possibilities, and your listing becomes accessible to a broader base.
For buyers: Highlight that they may be able to keep their financing within the conforming realm — which translates into more favorable terms and fewer underwriting hurdles.
Geography matters: The $819k number is for most of the U.S., but there are higher limits in especially high-cost areas (look up your county’s limit).
Not automatic “lower rate”: While conforming loans generally have better pricing, actual rates depend on many factors (borrower credit, down payment, loan type, market conditions).
Still big numbers: Even though $819k is higher, this is still a large loan — affordability and borrower qualification still matter.
Timing and planning: Buyers and agents who act proactively may position themselves better in a shifting market — knowing the loan threshold has moved gives you an edge.
Milestone Home Mortgage LLC NMLS #2588937. Michael Shotnik NMLS: 218281, CO License: 100017466. Not licensed in Alaska or New York. To check license status of mortgage loan originator, visit D.O.R.A. and NMLS consumer access.
