2026 Loan Limits: Will Conforming Loans Top $842K?
Conforming (aka “conventional”) loan limits could jump ~4.46% in 2026—to $842K+—based on early FHFA Home Price Index trends. In this episode, Tim Lucas and Craig Berry explain how limits are set, who benefits, and smart ways to bridge the gap right now. You’ll learn:
- How Limits Move: FHFA’s HPI drives the annual reset; recent history saw +18% (2022) and +12.2% (2023), making a ~4.5% 2026 rise relatively modest.
- High-Cost Areas: Caps run 150% of the standard limit—potentially $1.2M+ for 1-unit homes and ~$2.4M for 4-units in 2026.
- Should You Wait? Prices may keep climbing; waiting for higher limits could mean paying more for the same home.
- Bridge Strategies Now: Pair a conventional first (e.g., current $806,500 limit) with a HELOC for the remainder, or shop competitive jumbo/portfolio loans.
- First-Timer Perks: Conventional loans allow 3% down with 620+ credit and cancelable mortgage insurance—a strong FHA alternative for many.
- Timing the Rollout: Lenders typically honor new limits once announced—often late November—and some accept them early.
- Local Nuance: Hundreds of counties carry higher regional limits (think parts of CA, NY, HI).
Get the full breakdown:
https://www.mortgageresearch.com/articles/will-conventional-loan-limits-increase/
https://www.mortgageresearch.com/articles/will-conventional-loan-limits-increase/
