If you plan to buy a home in 2026, understanding the new conforming loan limit is one of the most important steps. These limits decide whether your mortgage is considered “conforming” or “jumbo,” and that affects your interest rate, down payment, and loan qualification.

The conforming loan limit 2026 update is especially important in states with higher home prices—like California. Although the baseline applies across most of the country, California often receives higher limits due to its expensive real estate markets.

This guide explains how California compares to the rest of the U.S., what these limits mean for homebuyers, and how the numbers changed from 2025 to 2026.

2026 Conforming Loan Limit: Quick Overview

Here are the baseline national limits for 2026:

These baseline numbers apply to most counties across the United States. California, however, has several high-cost counties, which means its limits can be significantly higher than the national average.

2026 Conforming Loan Limits Across the United States

The following table shows the national baseline for all property types. This structure matches the standard format used by FHFA across the country. Most states follow these exact numbers unless they fall into a high-cost category.

2026 Baseline Conforming Loan Limits

If your mortgage amount is above these numbers, you’ll need a jumbo loan, which means stricter credit requirements and usually a larger down payment.

What Is a Conforming Loan Limit?

Many buyers ask: what is a conforming loan limit?

In simple terms:

A conforming loan limit is the maximum amount Fannie Mae and Freddie Mac will back. If you stay within this limit, you get:

• Lower interest rates
  
  
• Easier mortgage approval
  
  
• More flexible qualification rules
  
  
• Lower minimum down payments
  
  

Any loan amount above the limit becomes non-conforming, also known as a jumbo loan.

How FHFA Sets the 2026 Conforming Loan Limits

The FHFA reviews nationwide home-price data every year and makes adjustments to keep pace with changes in housing costs.

The process includes:

1. Analyzing the previous year’s home-price appreciation
   
   
2. Updating the baseline conforming loan limit
   
   
3. Reviewing high-cost areas that require higher limits
   
   
4. Publishing the final limits for the next year
   
   

California has many markets where home prices are well above the national median, so several of its counties receive higher loan limits than the rest of the U.S.

How 2026 Compares to 2025

Homebuyers often ask: what is the conforming loan limit for 2025?

The 2025 limit for a 1-unit property was $806,500.

That means the 2026 conforming loan limit of $832,750 reflects an increase based on national home-price growth. Even though price increases were modest in many areas, FHFA still raised the limit to match rising housing costs.

This increase helps more buyers stay inside conforming guidelines without being pushed into jumbo loan territory.

2026 Conforming Loan Limits: How California Compares to the Rest of the U.S.

California is one of the most unique states in the country when it comes to mortgage limits. Here’s how it differs from the national baseline:

1. California Has More High-Cost Counties Than Any Other State

While most of the country uses the baseline limit of $832,750, California has many counties with significantly higher loan limits due to elevated home prices.

High-cost counties often include:

• Los Angeles County
  
  
• Orange County
  
  
• San Diego County
  
  
• San Francisco County
  
  
• Santa Clara County
  
  
• Alameda County
  
  
• San Mateo County
  
  
• Marin County

These counties regularly exceed the national baseline because their median home prices are far above the U.S. average.

2. California Buyers Can Borrow More Before Hitting Jumbo Status

In many California counties, the conforming limit for a single-family home can exceed $1 million due to high-cost adjustments.

This gives California buyers:

• More purchasing power
  
  
• Lower interest rates than jumbo loans
  
  
• Easier approval even for high-priced markets

In contrast, buyers in most states—like Michigan, Ohio, or Kansas—stay with the baseline number because their home prices do not qualify for high-cost adjustments.

3. Not All California Counties Are High-Cost

It’s important to note that not every California county has an elevated limit.

Rural and inland counties may still use the baseline $832,750 number.
That means California has:

• High-cost counties
  
  
• Baseline-limit counties

This mixed structure sets California apart from most states, which usually use the same limit for all counties.

Why These Differences Matter

Understanding how California compares to the rest of the country helps you plan your financing strategy based on where you’re buying:

If you're buying in California

You may qualify for a conforming loan even at higher price points that would be jumbo loans elsewhere in the U.S.

If you're buying in other states

You’ll mostly follow the national baseline limit. Homes priced above the baseline push you into jumbo loan requirements faster.

If you're relocating

Knowing the differences helps you budget correctly when moving between states with different price levels.

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FAQs: 

1. What is the conforming loan limit 2026?

The national 2026 limit for a 1-unit property is $832,750, with higher limits in high-cost counties.

2. What is the conforming loan limit for 2025?

The 2025 limit was $806,500, which increased in 2026 due to home-price changes.

3. What makes California different from other states?

California has many high-cost counties, allowing higher conforming loan limits compared to most of the country.

4. What happens if my loan amount is higher than the limit?

Your mortgage becomes a jumbo loan, requiring stronger credit and larger down payments.

5. Why does the conforming loan limit matter?

It impacts:

• Your interest rate
  
  
• Your down payment
  
  
• Qualification rules
  
  
• Whether your loan is conforming or jumbo