So far, at least three large mortgage companies have upped conforming loan limits ahead of time for 2026.
This has been somewhat customary lately as home prices, which dictate the loan limits, have gone up significantly year after year.
To gain a competitive edge, or to simply generate a press release, certain lenders will push out the updated loan limits several months early.
The nation’s top mortgage lender, United Wholesale Mortgage (UWM), was the first to do so, and has since been followed by a couple other heavyweights.
Other than UWM, CrossCountry Mortgage and Rate (formerly known as Guaranteed Rate) have also released the early bird limits.
But what’s more interesting is the increase in loan limits seems to be a lot more muted than in prior years.
2026 Conforming Loan Limits Rise to $819,000
– $819,000 one-unit conventional and VA loans (up from $806,500)
– $1,048,500 two-unit conventional loans (up from $1,032,650)
– $1,268,000 three-unit conventional loans (up from $1,248,150)
– $1,575,000 four-unit conventional loans (up from $1,551,250)
As noted, the conforming loan limits, which apply to loans backed by Fannie Mae and Freddie Mac, are driven by home price appreciation from the prior year.
Specifically, it’s the year-over-year percentage change in home prices between the third quarter of last year and the current year, as tracked by the FHFA House Price Index (HPI).
Here’s where it gets kind of interesting. The three lenders that have released advanced loan limits for 2026 all landed on $819,000 for a one-unit property.
This is up from $806,500 currently, or $12,500 higher. It also represents a gain of 1.55%.
Compare that to the year prior, when the conforming loan limit jumped $39,950 from $766,550.
That was a 5.2% increase from 2024, which tells you home price growth is slowing considerably.
Yes, it’s still higher, but a gain of just 1.55% versus 5.2% is a pretty stark difference.
It makes you wonder if these advanced loan limits might not happen next year, assuming home prices cool even more. Or if they somehow go down nationally.
Even if home prices increased 1% in 2026, these lenders might not feel it necessary or prudent to offer higher loan limits in advance.
While it’s no cause for alarm, it does speak to affordability woes finally taking a bite out of home price appreciation.
And it’s a good reminder that home prices and mortgage rates aren’t inversely related.
They can both go down at the same time.
Just as they both rose for several years, falling mortgage rates driven by say higher unemployment could be accompanied by lower asking prices.
What’s the Point of Early Loan Limit Increases Anyway?
As for why lenders even estimate the loan limits in advance and then make them available to their customers, there are several reasons.
In its press release, UWM stated that: “This proactive move allows brokers to offer larger loan amounts, enabling more borrowers to avoid moving into high balance or jumbo loans, which typically come with higher rates and stricter underwriting guidelines.”
It’s generally true that mortgage rates are higher on jumbo loans, though it’s not always the case and may depend on the lender in question.
However, underwriting guidelines are typically more forgiving on conforming loans than jumbo loans, including lower minimum credit scores and down payments.
CrossCountry Mortgage COO Jenn Stracensky said, “Today’s housing market can be tough to navigate, and CCM is focused on creating solutions that give homebuyers an edge.”
“By raising limits early, our Early Bird Program empowers borrowers to act now and move closer to their dream of homeownership.”
Given the loan limits are only up 1.55% though, it’s unclear how much of an edge they’ll really provide.
In the past, the increases were larger and may have been more impactful. But the advanced 2026 conforming loan limits probably won’t benefit too many borrowers.
And as I said, it does raise questions about where this housing market is headed.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.
