2026 Conforming Loan Limits Are Increasing: What Buyers & Sellers Need to Know Now
Each year, the Federal Housing Finance Agency (FHFA) updates the conforming loan limits—the maximum loan size eligible for purchase by Fannie Mae and Freddie Mac. These updates are based on nationwide home-price data and directly impact buyer affordability, market competition, and seller strategy.
For 2026, the FHFA announced a significant increase that will influence real estate activity across Dallas–Fort Worth, especially in the $750K–$900K range.
Below is a breakdown of what changed, when it takes effect, and how buyers and sellers should prepare.
📌 The New 2026 Conforming Loan Limits
FHFA has increased the 2026 baseline conforming limit to:
2026 Baseline Limits (1–4 units)
1-unit: $832,750
2-unit: $1,066,250
3-unit: $1,288,800
4-unit: $1,601,750
High-cost areas (not applicable in DFW) will see 1-unit limits up to $1,249,125.
This update reflects measured increases in home prices across the country and expands access to conventional financing for buyers in higher-priced markets.
📌 When the New Limits Take Effect
The new loan limits apply to mortgages acquired by Fannie Mae and Freddie Mac on or after January 1, 2026.
Many lenders begin accepting the new limits in late November or December of the prior year, offering buyers earlier access to increased purchasing power.
📌 Why This Matters for Buyers
1. Higher Purchasing Power Without Jumbo Requirements
Buyers can borrow up to $829,523 while staying within conforming loan guidelines. Benefits typically include:
Lower minimum down payments
More favorable interest rates compared with jumbo loans
Smoother underwriting
Lower cash-to-close
This helps buyers utilize conforming loans in neighborhoods where pricing has steadily risen—especially places like Keller, Southlake, Argyle, and Trophy Club.
2. Expanded Access to Homes in Desired Areas
Homes that previously required jumbo financing can now fall into conforming range.
3. More Flexibility During Pre-Approval
With new limits, buyers should update pre-approval letters and re-run affordability calculations to understand their expanded options. Our preferred lenders are always on top of the updates and will notify our clients if their preapproval options have changed.
📌 Why This Matters for Sellers
1. A Larger, Better-Qualified Buyer Pool
The loan-limit increase expands the number of buyers who can comfortably finance homes in upper-moderate price points.
2. Potential for Faster Transactions
Conforming loans typically involve:
Faster underwriting
More predictable timelines
Fewer financing complications
This can strengthen offers and reduce delays.
3. Strategic Pricing Opportunities
Examples:
Pricing at $829,000 may attract significantly more buyers than $835,000.
Homes hovering between high-$700Ks and low-$900Ks may experience heightened demand.
If you're planning to list in early 2026, now is the time to evaluate how pricing near major financing thresholds could benefit your outcome.
📌 What Buyers Should Do Next
Ask your lender whether they are already honoring the 2026 limits.
Update pre-approval letters issued before the announcement.
Revisit affordability calculators—your options may have expanded.
📌 What Sellers Should Do Next
Review pricing strategy with your agent, especially if your home sits between $750K–$900K.
Prepare for early-year buyer activity as new budgets take effect.
Ensure your home is presented well and stands out from other similarly priced/comparable listings—expanded demand doesn’t eliminate the need for strong preparation, pricing, and condition.
Bottom Line
The 2026 conforming loan limit increase to $829,523 is a major shift that enhances purchasing power for buyers and opens strategic opportunities for sellers. If you're considering a move before the end of 2025 or early 2026, now is the ideal time to review your real estate strategy and align your plans with these updated lending thresholds.
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Sources
This article is based on verified information from primary, authoritative housing-market agencies:
1. Federal Housing Finance Agency (FHFA) – 2026 Conforming Loan Limit Announcement
https://www.fhfa.gov
2. FHFA – 2026 Baseline Loan Limit Tables
https://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx
3. Fannie Mae – Loan Limit Reference
https://singlefamily.fanniemae.com
4. Freddie Mac – Loan Limit Reference
https://sf.freddiemac.com