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The Federal Housing Finance Agency (FHFA) has released the new 2026 conforming loan limits, and homebuyers across Washington State will see expanded borrowing power starting January 1, 2026. These limits determine the maximum loan amount that can be financed through conventional programs backed by Fannie Mae and Freddie Mac.

You can view the official FHFA announcement here:
https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026

New Baseline Loan Limit for 2026

For a one-unit home anywhere in the U.S., the new baseline conforming loan limit will increase to:

$832,750

This updated limit reflects rising home prices over the past year and provides more room for borrowers to stay within conventional financing—often making the homebuying process more affordable and flexible.

What This Means for Washington Homebuyers

Many parts of Washington—especially the Puget Sound region—have higher-than-average home values. While the statewide baseline applies broadly, some counties may qualify for even higher limits depending on local price trends.

Higher conforming limits can benefit buyers by:

• Allowing more homes to be financed with conventional loans instead of jumbo loans
• Potentially offering lower down payment options, depending on the program
• Expanding eligibility for first-time homebuyer programs
• Improving overall affordability and purchasing power

To look up the limit for your specific Washington county, use the FHFA tool:
https://www.fhfa.gov/data/conforming-loan-limit

Why Loan Limits Increase

Every year, FHFA adjusts conforming loan limits based on its Home Price Index, which measures changes in average home values nationwide. Recent data showed U.S. home prices increased about 3.26% year-over-year, which directly influences the new 2026 limits.

More details on FHFA’s Home Price Index:
https://www.fhfa.gov/data/hpi

What Buyers Should Do Next

If you're planning to buy or refinance in 2026, now is a great time to:

• Review your budget and updated purchasing power
• Explore conventional loan options under the new limits
• Get pre-approved early to position yourself competitively
• Talk with a local mortgage professional who can walk you through the changes

Higher loan limits help make more homes accessible through conventional financing—especially important in fast-moving markets like Seattle, Bellevue, Tacoma, Everett, and surrounding areas.