In short
A jumbo loan is a mortgage above the conforming loan limit, the largest loan Fannie Mae or Freddie Mac can acquire. For 2026, FHFA set the limit for one-unit properties at $832,750 in most of the United States, up $26,250 from 2025. In high-cost areas the limit can reach a ceiling of $1,249,125, which is 150% of the baseline. In Alaska, Hawaii, Guam and the U.S. Virgin Islands, the 2026 baseline is $1,249,125 and the ceiling $1,873,675.
What a jumbo loan is
FHFA explains that Fannie Mae and Freddie Mac are restricted by law to buying single-family mortgages below a set amount, the conforming loan limit (CLL). Loans above this amount are known as jumbo loans.
The CFPB separates conventional loans into two groups:
- Conforming loans, whose maximum amounts are set by the government and whose other rules are set by Fannie Mae or Freddie Mac. See conventional loans.
- Non-conforming loans, which are less standardized. Eligibility, pricing and features can vary widely by lender.
A jumbo loan is non-conforming. The CFPB notes that jumbo rules vary by lender, but borrowers usually need good credit and a high down payment to qualify. See credit score and mortgage and down payment.
2026 conforming loan limits
FHFA announced the 2026 values on November 25, 2025. They apply to loans Fannie Mae and Freddie Mac acquire in 2026, and take effect on January 1.
| Area (one-unit property) | 2026 limit |
|---|---|
| Baseline, most of the U.S. | $832,750 |
| High-cost area ceiling | $1,249,125 |
| Alaska, Hawaii, Guam, U.S. Virgin Islands: baseline | $1,249,125 |
| Alaska, Hawaii, Guam, U.S. Virgin Islands: ceiling | $1,873,675 |
Source: FHFA, November 25, 2025.
Limits are set county by county and by number of units. FHFA says over 95 percent of counties use the baseline, and the limits can be higher for properties with two to four units. Check your county in FHFA’s 2026 loan limit list before you apply.
How the limit is set
The Housing and Economic Recovery Act of 2008 (HERA) requires FHFA to adjust the baseline each year to reflect the change in the average U.S. home price.
- FHFA’s House Price Index showed prices up 3.26 percent between the third quarters of 2024 and 2025, so the 2026 baseline rose by the same percentage.
- By statute, the baseline does not decrease. It stays flat until past price declines are “made up”. FHFA cites the baseline staying at $417,000 from 2006 until 2017.
- FHFA rounds baseline limits down to the nearest $50 and high-cost limits down to the nearest $25.
High-cost areas
Where 115 percent of the local median home value exceeds the baseline, the limit is higher than the baseline, up to the 150 percent ceiling. Areas follow core-based statistical areas (CBSAs), and every county in a CBSA gets the same value. FHFA says roughly 100 to 200 of the more than 3,000 U.S. counties qualify in a given year.
FHFA’s 2026 examples:
| Area | Median home value (2025 Q3) | 2026 one-unit limit |
|---|---|---|
| Santa Barbara County, CA | $819,000 | $941,850 |
| Seattle-Tacoma-Bellevue, WA | $925,000 | $1,063,750 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | $1,198,000 | $1,249,125 (ceiling) |
| Tallahassee, FL | $277,000 | Baseline |
FHFA also notes that 2026 limits are higher in all but 32 U.S. counties or county equivalents.
What this means for borrowers
- Compare the loan amount, not the price. The limit restricts the size of the loan, not the price of the home. A larger down payment can bring a loan under the limit.
- Shop several lenders. The CFPB says non-conforming loans vary widely by lender, so compare several offers. See mortgage preapproval and mortgage rates explained.
- Jumbo loans are conventional. The CFPB says “conventional” just means the loan is not part of a specific government program. FHA and VA loans are government programs: see FHA loans and VA loans.
- Tax deduction limit. IRS Publication 936 limits the mortgage interest deduction to interest on the first $750,000 of debt ($375,000 if married filing separately) for debt secured after December 15, 2017. A jumbo loan can exceed that amount. See mortgage interest deduction.
Frequently asked questions
What is the conforming loan limit for 2026?
$832,750 for a one-unit property in most of the United States, according to FHFA. The high-cost area ceiling is $1,249,125.
Is a loan above $832,750 always a jumbo loan?
No. In high-cost counties the conforming limit is higher, up to $1,249,125 (and up to $1,873,675 in Alaska, Hawaii, Guam and the U.S. Virgin Islands). A loan is jumbo only above your county’s limit.
When do the new limits apply?
FHFA updates the limits at the end of each November, and they take effect on January 1. The 2026 values were announced on November 25, 2025.
Can the conforming loan limit go down?
No. FHFA says that under HERA the limit does not decrease; it stays the same until earlier price declines are made up. Counties are also held harmless when local medians fall.
What do lenders look for on a jumbo loan?
Rules vary by lender. The CFPB says borrowers usually need good credit and a high down payment to qualify.
General information drawn from the official sources cited and dated on this page. It is not legal, tax or financial advice: for your own situation, ask a licensed professional.
More financing guides
- Mortgage Discount Points: How They Work and Tax Rules
- Adjustable-Rate Mortgage (ARM): Index, Margin and Caps
- 15-Year vs 30-Year Mortgage: Payment and Interest Compared
- Mortgage Rate Lock: Lock Periods, Float-Down and Expiry
- Home Equity Loan vs HELOC: Key Differences
- Reverse Mortgage (HECM): Rules and Repayment
- Gift Funds for a Down Payment: Rules and Gift Letter
- Assumable Mortgages: FHA, VA and USDA Rules
- Mortgage preapproval: what lenders check, how long it lasts
- Conventional loans: requirements and 2026 limits
- FHA loans: requirements, 2026 limits and mortgage insurance
- VA loans: eligibility and funding fee
- USDA loans: eligible areas, income limits and fees
- How much down payment do you need to buy a home?
- Private mortgage insurance (PMI): how to remove it
- Credit score and mortgage rates: what lenders look at
- Debt-to-income ratio: the limits mortgage lenders use
- How mortgage rates are set: rate, APR, points and locks
- Escrow accounts for taxes and insurance: your rights
- Refinancing a mortgage: costs, break-even and your rights
Sources
- FHFA Announces Conforming Loan Limit Values for 2026 (Federal Housing Finance Agency) (consulted October 19, 2026)
- FHFA Conforming Loan Limit Values FAQs (updated November 2025) (Federal Housing Finance Agency) (consulted October 19, 2026)
- Conforming Loan Limit (Federal Housing Finance Agency) (consulted October 19, 2026)
- Conventional loans (Consumer Financial Protection Bureau) (consulted October 19, 2026)
- Publication 936 (2025), Home Mortgage Interest Deduction (Internal Revenue Service) (consulted October 19, 2026)