2026 Conforming Loan Limits Update*
The FHFA released the 2026 conforming loan limits late Tuesday. The new limit will be $832,750, a 3.2 percent year-over-year increase. A first-time buyer can now put as little as 3 percent down on a home priced at $858,505.
High-balance limits for high-cost markets are now set at $1,249,125. A buyer can purchase up to $1,314,900 with as little as 5 percent down.
From a down payment perspective, these changes are positives for the market, especially for buyers who haven’t been able to accumulate a large amount of cash. We will likely begin taking applications at these new limits early next week.
Market Notes
It was a quiet week in the markets, with rates settling in near recent lows. This week we’ll hear from a few Fed governors, so the market will be looking for clues ahead of the next FOMC meeting on the 9th and 10th, including any signals on the likelihood of a short-term rate cut. We won’t get fresh inflation data before the meeting, but this Friday we will see the October JOBS report. Continued weakness in job growth could play a key role in the Fed’s decision. We will see.
Enjoy the rest of the holiday weekend, and please don’t hesitate to reach out with any mortgage related questions or needs.
-Steve-
*All loans are subject to credit approval and program guidelines. Rates, terms, and availability are subject to change without notice. Minimum down payments, loan limits, and eligibility requirements vary by program and location. This communication is for informational purposes only and is not a commitment to lend.