The Federal Housing Finance Agency has announced that conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2026 will increase by 5.21 percent. Throughout the majority of the U.S., the 2026 maximum conforming loan limit for one-unit properties will be $832,750, an increase from $806,500 in 2025.
For 2026, the VA loan limits will once again align with the FHFA conforming loan limits. This means that throughout the majority of the U.S., the 2026 maximum VA loan limit for one-unit properties will be $832,750.
These new FHFA and VA loan limits are effective immediately, but loans using the new limit must close on or after January 1, 2026.
This is the ninth loan limit increase in the last nine years, and it will take effect in most areas throughout the United States due to rising home values, with the exception of 5 specific counties or county equivalents.
What Does This Higher Conforming Loan Limit Mean For New York Home Buyers?
Conforming loan limits determine the threshold at which home loans start being considered jumbo loans. This year’s change means that the cutoff point for mortgages shifting from conforming loans to jumbo loans is higher.
This is good news for home buyers who are looking to purchase a home that’s priced around that threshold amount, because the higher limit means that they can secure a larger mortgage without having to go “jumbo.”
Typically, jumbo loans come with more stringent requirements, such a higher credit scores and larger cash reserves. They may also require a larger down payment, extra appraisals, and additional fees. Sometimes they come with higher interest rates as well.
Given all of these extra requirements, most homebuyers would prefer a conforming loan when financing their home purchase. As such, the fact that the conforming loan limit has increased should make many home buyers looking to buy a home in 2026 happy!
What Does The Change to the VA Loan Limit Mean For New York Home Buyers?
The VA loan limits apply to military buyers only—meaning only those who have served or who are currently serving in a branch of the United States military can take advantage of it.
The increase in the loan limit for VA loans is intended to assist military borrowers in more expensive loan markets to borrow more without having to put any money down on their home.
You can learn more about the advantages and benefits of VA home loans here.
How Was the 2026 Conforming Loan Limit and VA Loan Limit Determined?
Each year, loan limit adjustments are made based on the changes that occurred in the average price of a home in the United States. This adjustment is required by the Housing and Economic Recovery Act.
The limits for 2026 were increased and adjusted in alignment with the changes and trends related to home prices over the last year. Between the third quarters of 2024 and 2025, house prices increased about 2.2% on average. The baseline loan limits for 2026 were then increased by a similar amount.
Are There Any Areas Where Conforming Loan Limits Are Higher?
In specific high-cost areas throughout the US, the VA and conforming loan limits will be higher than the $832,750 established for the majority of the United States. These high-cost areas are locations where 115% of the local median home value exceeds the baseline conforming loan limit.
In these areas, the loan limits will be 50% higher than the limit for one-unit properties elsewhere, raising it to $1,249,125 in 2026 (up from $1,209,750 in 2025).
There are also special provisions made for conforming loan limits for areas outside of the continental US, such as Alaska, Hawaii, Guam and the US Virgin Islands, where the limit will be raised to $1,209,750 for 2026 as well.
Have Any Other Loan Limits Increased for 2026?
If you’re shopping your mortgage options, you may be wondering how loan limits are changing for other types of home loans in 2026.
Besides the loan limit increases for FHFA conforming loans and VA loans, FHA loan limits will also increase as of January 1, 2026. You can get all the details about the changes being made to the FHA loan limits in 2026 here.
Hoping to Buy a Home In New York State? 2026 May Be a Good Time to Do So!
Ready to purchase a home and wondering how to go about taking advantage of the new, higher VA or conforming loan limits for 2026? Contact us today to find out how these changes may impact you.
Give us a call at 518-782-1202 or contact us online to get the conversation started. We can discuss your specific situation and help you understand what type of home loan will be best for you!
Wondering what your mortgage options are in the state of New York? You can explore those here.
Note: This post has been updated as of December 3, 2025.
