What is the difference between a conforming loan and a jumbo loan limit for 2026?

A conforming loan meets the size limits set annually by the Federal Housing Finance Agency so it can be bought by Fannie Mae or Freddie Mac. The FHFA raises these limits each year with home prices; historically the baseline exceeds $800,000 in most areas and runs higher in expensive markets, but check the current year's figure since it changes annually. Anything above the local conforming limit is a jumbo loan, which is not government-backed and therefore carries stricter requirements: higher credit scores, larger down payments, and more cash reserves. Jumbo rates are sometimes competitive with conforming rates. If you are near the line, borrowing just under the limit can unlock easier terms. See the current limits at fhfa.gov.