Big news for homebuyers and homeowners across Northern Virginia.
The Federal Housing Finance Agency (FHFA) has officially released the 2026 conforming loan limits, and they are increasing again. These new limits impact everything from first-time buyer affordability to refinance opportunities for current homeowners.
In this article, I will break down what changed, what it means for you, and how to determine if you live in a high-cost county, which is especially important in markets like Northern Virginia, Arlington, Alexandria, Fairfax, and Loudoun.
What Is a Conforming Loan Limit
A conforming loan is a mortgage that meets the funding guidelines of Fannie Mae and Freddie Mac. The FHFA sets a maximum loan size each year that determines:
• Which loans are eligible for conforming pricing
• What down payment options are available
• Which underwriting standards apply
• Whether a loan is classified as conforming or jumbo
Conforming loans typically offer better rates, lower down payments, and more flexible qualification compared to jumbo loans. This is why these limits matter for buyers in high-priced areas like Northern Virginia.
2026 Conforming Loan Limits: Standard vs High-Balance Explained
The FHFA has released the 2026 conforming loan limits, and there are two important tiers buyers need to understand.
1. Standard Conforming Loan Limit for 2026
✔ $832,750
This limit applies to all counties in the United States.
Any loan amount at or below $832,750 is considered a standard conforming loan and receives the most favorable pricing and guideline flexibility available through Fannie Mae and Freddie Mac.
A key benefit is the minimum down payment requirement.
Borrowers can put as little as 3 percent down up to this limit, which is especially helpful for first-time buyers.
2. High-Balance Conforming Loan Limit for 2026
✔ $1,249,125
In certain high-cost areas, the FHFA provides a second tier called the high-balance conforming limit. This allows borrowers in designated counties to access conforming loan guidelines at a higher loan amount.
Loans between $832,750 and $1,249,125 in these counties are considered high-balance conforming loans.
A major advantage is the relaxed down payment requirement.
Borrowers can put as little as 5 percent down up to this limit.
How This Differs From Jumbo Financing
If your loan amount exceeds the high-balance conforming limit, it simply moves into what is known as jumbo financing. Jumbo loans are common in higher-priced markets like Northern Virginia, and many buyers use them successfully every year.
Jumbo loans follow a different set of guidelines that can include:
• Higher down payment requirements
• Additional reserve requirements
• A more detailed review of assets and income
• Lower debt-to-income caps
• Higher credit score requirements and a longer established credit history
• Stricter evaluation of housing payment history, which can be challenging for buyers who were living with family or do not have easily documented rental payments
• A more customized underwriting process
None of these are bad or unusual, but they do involve a more stringent underwriting guideline and review, which is important to understand as you plan your purchase.
For some buyers, staying within the conforming or high-balance ranges can create a smoother process with lower minimum down payments. For others, jumbo financing is the right fit for their goals. Part of my job is helping you understand each option so you can choose the best path based on your situation.
Which Areas Are Considered High-Cost
A county is classified as high-cost when its median home price is at least 115 percent of the national median home price.
High-cost areas often include:
• Northern Virginia
• Washington DC
• California coastal markets
• Metro New York and New Jersey
• Parts of Maryland
• Other high-price metropolitan regions across the United States
In the DC Metro and Northern Virginia region, most counties qualify for high-cost status due to elevated home values.
How To Check If You Are in a High-Cost Area
The FHFA provides a fast and easy lookup tool.
Here is how to check your county in less than 10 seconds:
- Visit the official FHFA Loan Limit Lookup tool:
https://www.fhfa.gov/CLL - Select your state
- Select your county
- You will instantly see:
• Baseline conforming limit
• High-balance limit if applicable
• Limits for 2, 3, and 4-unit properties
What This Means for Northern Virginia Buyers
1. You Can Buy More With Less Down
With the new limits:
• First-time buyers can put 3 percent down on a home up to roughly $858,000
• In high-cost areas, buyers can put 5 percent down on homes just over $1.3 million
This creates significant affordability improvements for Northern Virginia buyers, where competitive markets often push people into jumbo financing.
2. Better Rates and Easier Qualification
Conforming loans typically offer:
• Lower interest rates
• Lower reserve requirements
• Lower PMI
• More flexible credit standards
Many buyers who needed jumbo loans last year may now qualify for conforming pricing.
What This Means for Current Homeowners
1. New Refinance Opportunities
If your current mortgage was previously categorized as jumbo, you may now qualify for a conforming refinance with:
• Better pricing
• Lower mortgage insurance options
• Easier guidelines
• Faster approval
2. More Flexibility for Cash-Out or Renovation Loans
Higher limits mean more homeowners can stay within conforming guidelines, which often lowers costs for renovation or cash-out strategies.
FAQ: 2026 Conforming Loan Limits
Why did the limits increase?
Because national home prices increased, and the FHFA adjusts limits annually to keep up.
Does this affect FHA or VA loan limits?
Not yet. FHA and VA typically update their limits later in the year.
Do the same limits apply in every county?
Some use the baseline limit and others qualify for the high-cost ceiling.
When do these new limits take effect?
The official effective date is January 1, 2026, although Atlantic Bay Mortgage Group is already honoring the new limits.
Video Breakdown: 2026 Loan Limit Update
Final Thoughts
The 2026 loan limit increase provides meaningful benefits for buyers and homeowners across Northern Virginia. Whether you are planning a purchase, evaluating a move-up, or considering a refinance, these new limits expand your options and increase overall affordability.
If you would like to see how these changes impact your specific scenario, I am always here to help.
Ready to explore your options
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Written by John Pyne, SVP Regional Manager and Northern Virginia Mortgage Advisor specializing in affordability strategies, first-time buyers, and smart financing solutions in high-cost markets.