REAL ESTATE INSIGHTS
Harris Real Estate Daily
By Tim & Julie Harris · December 4, 2025
The Federal Housing Finance Agency (FHFA) released both the September House Price Index (HPI) and the new Conforming Loan Limits (CLLs) for 2026—and the news is almost universally positive for buyers and agents.
Here’s the breakdown, what changed, and what it means for your business in 2025–2026.
🏡 The New 2026 Baseline Conforming Loan Limit: $832,750
➡️ $832,750 (up $26,250 from 2025)
This increase is driven by year-over-year home price appreciation.
According to FHFA’s latest data:
U.S. home prices are up 5.0% year-over-year (Sept 2023–Sept 2024)
Prices are up 0.1% month-over-month
49 states posted positive annual appreciation (FHFA HPI)
Rising prices = rising loan limits.
These increases help more buyers stay inside conforming financing, avoiding higher-cost jumbo loans.
📍 High-Cost Markets: New Ceiling = $1,249,125
Some areas—mostly on the coasts—have median home prices far above the national baseline. By law (HERA), the max limit can be 150% of the baseline.
➡️ 2026 high-cost ceiling: $1,249,125
Examples:
Los Angeles County → $1,249,125 (one-unit)
4-unit high-cost limit → $2,402,625
4-unit low-cost limit → $1,601,750
If your clients are buying in:
LA
Orange County
San Francisco Bay Area
NYC metro
Hawaii
Alaska
…expect them to benefit from these higher CLLs.
📊 1–4 Unit Loan Limits for 2026 (Baseline Areas)
Units | 2026 Conforming Limit |
|---|---|
1-unit | $832,750 |
2-unit | $1,067,250 |
3-unit | $1,289,850 |
4-unit | $1,601,750 |
This is important because many agents forget:
Small multifamily (2–4 unit) properties can still qualify for conforming financing.
This is a massive opportunity for investor-minded buyers and house-hackers.
📌 FHA Loan Limits for 2026
FHA’s low-cost floor is set at 65% of the baseline conforming limit.
➡️ 2026 FHA floor: $541,287
This varies by county, and high-cost FHA areas can go much higher. HUD will release the complete county-by-county list later, but this is your working benchmark.
🔍 Why Loan Limits Don’t Go Down During Market Declines
A big misconception:
CLLs never decrease—even during price corrections.
Examples:
The CLL stayed $417,000 from 2006 to 2016, even though prices fell sharply after 2008.
It only increased again once FHFA’s HPI recovered to past highs.
This is important because it prevents sudden financing disruptions during downturns.
📈 What This Means for Buyers in 2025–2026
1. More Buyers Can Avoid Jumbo Financing
Jumbo loans often require:
Higher credit scores
Larger down payments
Higher reserves
Tighter underwriting
Higher rates (in many markets)
The new CLLs allow more buyers to stay in conforming territory—meaning lower monthly payments and easier approvals.
2. Move-Up Buyers Benefit the Most
Clients moving from a $600K home to a $900K+ home can now finance with more flexibility.
3. First-Time Buyers Get Access to Bigger FHA and Fannie/Freddie Loans
Especially important in markets where entry-level homes start in the $500K–$700K range.
4. Better Appraisal Support
Higher limits align appraisals with reality in markets that have appreciated aggressively.
🌎 What This Means for Agents
✔ You have a new conversation starter with your database
This is a perfect “value email” to send to past clients and prospects.
✔ More fall and early-spring buyers will re-enter the market
People waiting for jumbo-level savings may now qualify under conforming.
✔ Higher limits can help hesitant sellers become buyers
Agents should pair this change with messaging around:
Rate buydowns
Assumable loans
New construction incentives
Easier underwriting under conforming rules
✔ Investors can leverage 2–4 unit conforming loans
Many don’t know this option even exists.
🗣 How to Use This in Your Marketing Today
Post or email:
“2026 loan limits are up again—meaning buyers can now borrow more at better terms and avoid expensive jumbo loans. If you’ve been waiting to upsize or invest, this is your window.”
This is a major opportunity to generate conversations and appointments.
📎 Sources Referenced (Non-NGO, User-Preferred)
Federal Housing Finance Agency (FHFA.gov)
FHFA HPI September 2024
Housing and Economic Recovery Act (HERA)
U.S. Census median price data
MBA Weekly Applications Survey
CoreLogic HPI (supporting data where relevant)
💬 Final Thoughts
The 2026 Conforming Loan Limit increase is great news for both buyers and agents.
More borrowing power.
More flexibility.
More realistic financing for today’s home prices.
And more reasons for buyers to get off the sidelines.
Use this update as a catalyst for conversations with your sphere—especially move-up buyers and investors.
— Tim Harris
Tim and Julie Harris Real Estate Coaching
📬 Interested in Elite Coaching? Text Tim directly at 512-758-0206