2026 and 2027 Conventional Loan Limits: What Qualifies Now

The 2026 baseline conventional loan limit for a single-unit home is $832,750, set by the Federal Housing Finance Agency (FHFA) for most U.S. counties. As of September 2026, ABS Home Mortgage is using the higher 2027 numbers to close loans right now — $850,000 for one unit — instead of waiting for FHFA's official confirmation, which typically arrives in late November. Two-unit, three-unit, and four-unit limits move with it: the current 2026 baseline is $1,066,250, $1,288,800, and $1,601,750, and the numbers we're using now for 2027 are $1,088,350, $1,315,500, and $1,634,950.

These numbers apply to the contiguous 48 states. ABS Home Mortgage is licensed in Illinois, Texas, Florida, and Georgia, and we don't lend in Alaska or Hawaii, which carry their own higher baseline limits under federal law.

Why the limit moves every year

The conforming loan limit isn't set by a committee vote. Under the Housing and Economic Recovery Act, FHFA is required to adjust it annually based on the year-over-year change in the average U.S. home price, measured by FHFA's House Price Index from the third quarter of one year to the third quarter of the next. Home prices went up, so the ceiling on what counts as a "conforming" loan goes up with them. The formal number for 2027 depends on Q3 2026 data that's mostly already in — which is why we're comfortable using it for closings now, before FHFA's press release makes it official.

2026 baseline vs. the 2027 numbers we're using now, by property type

Property type	2026 baseline (current)	2027 baseline (available now)
1-unit	$832,750	$850,000
2-unit	$1,066,250	$1,088,350
3-unit	$1,288,800	$1,315,500
4-unit	$1,601,750	$1,634,950

High-cost counties — parts of California, New York, Massachusetts, and Washington D.C. among them — carry ceiling limits up to 150% of these baselines. Alaska, Hawaii, Guam, and the U.S. Virgin Islands have their own separate, higher limits; ABS Home Mortgage doesn't originate loans in Alaska or Hawaii.

Why these numbers work for closings now

Most lenders hold to the current year's limit until FHFA's official release, then scramble to requalify borrowers once the new number is public. With direct access to our own underwriting, we're using the higher 2027 numbers today — so a borrower buying a $900,000 two-unit property this fall doesn't have to structure the deal around a jumbo loan just because the calendar hasn't caught up to the data.

Here's the part worth being direct about: if your loan closes now, it closes at these numbers — that's locked in. FHFA's official confirmation in November could land at a different figure, but that only affects loans that close after the announcement, not anything already funded. This isn't a commitment to lend, and all loans remain subject to credit approval, but the timing risk sits with future closings, not with yours if you close first.

Conventional vs. jumbo — what changes above the limit

A loan at or below the conforming limit for its property type and county is a conventional loan, eligible for Fannie Mae and Freddie Mac purchase. A loan above that limit is a jumbo loan — different underwriting, typically a higher credit score and larger down payment, and pricing that moves independently of conforming rates. If your purchase price is close to the line, which program you land in can change your rate, your down payment, and your closing timeline. We've closed a $1.4 million jumbo loan in 12 calendar days when the file was clean; a conforming loan at these limits usually moves faster still.

Getting pre-approved at these limits

If you're not sure which number applies to your purchase or refinance, explore our loan programs or call 630-357-1600. First-time buyers in the Chicago area asking similar questions about what they qualify for may also find our Naperville first-time buyer guide useful, and anyone looking at property above these limits should see our jumbo loan program.

Common questions

What is the 2026 conventional loan limit?

$832,750 for a one-unit home in most U.S. counties, confirmed by FHFA in November 2025 for the 2026 calendar year.

Are conventional loan limits going up in 2027?

Yes. We're already using $850,000 as the 2027 baseline for closings today, based on FHFA's House Price Index data through the third quarter of 2026. FHFA's official confirmation is expected in November 2026; if that number differs from what we're using now, it would apply to loans that close after the announcement, not to loans already closed.

What are the conventional loan limits for 2-unit, 3-unit, and 4-unit properties?

The 2026 baseline is $1,066,250 for a two-unit property, $1,288,800 for three units, and $1,601,750 for four units. The numbers we're using now for 2027 are $1,088,350, $1,315,500, and $1,634,950.

Can I get approved above $832,750 before FHFA's official 2027 announcement?

Yes. If your loan closes before FHFA's official November announcement, it closes using the higher 2027 numbers we're already lending against, subject to credit approval. Loans that close after FHFA's announcement will use whatever limit FHFA confirms at that time.

Do loan limits differ by county or state?

Yes. High-cost counties — including parts of California, New York, Massachusetts, and Washington D.C. — have ceiling limits up to 150% of the baseline. Alaska, Hawaii, Guam, and the U.S. Virgin Islands have their own higher statutory limits. ABS Home Mortgage is licensed in Illinois, Texas, Florida, and Georgia, and doesn't lend in Alaska or Hawaii.

What's the difference between a conventional loan and a jumbo loan?

A conventional loan stays at or below the conforming loan limit for its property type and county, making it eligible for sale to Fannie Mae or Freddie Mac. A loan above that limit is a jumbo loan, which usually requires a higher credit score, a larger down payment, and underwriting that isn't tied to conforming guidelines.