What we verified in “Jumbo loans and FHA and conforming loan limits”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to FHFA, Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount, known as the conforming loan limit; loans above that amount are known as jumbo loans; Alaska, Hawaii, Guam and the U.S. Virgin Islands are four statutorily designated high-cost areas with higher limits; and today the limits are set under a permanent formula established by the Housing and Economic Recovery Act of 2008 (HERA).

   Sources 1 · FHFA Conforming Loan Limits: 'Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount'; 'conforming loan limit'; 'Loans above this amount are known as jumbo loans'; 'four statutorily-designated high cost areas: Alaska, Hawaii, Guam, and the U.S. Virgin Islands'; 'a permanent formula was established under the Housing and Economic Recovery Act of 2008 (HERA)' · Checked October 17, 2026

2. Under federal law (12 U.S.C. §1717(b)(2)), the limits on loans Fannie Mae may buy are higher for 2-, 3- and 4-family homes than for a single-family home; they are adjusted on January 1 of each year by the change in FHFA's house price index; if the index declines, there is no adjustment that year and declines are accumulated; limits may be up to 50 percent higher in Alaska, Guam, Hawaii and the Virgin Islands; and in an area where 115 percent of the median house price exceeds the limit, the limit rises to the lesser of 150 percent of the limit or 115 percent of the median house price.

   Sources 2 · 12 U.S.C. §1717(b)(2): 'Such limitations shall not exceed $417,000 for a mortgage secured by a single-family residence, $533,850 for a mortgage secured by a 2-family residence, $645,300 for a mortgage secured by a 3-family residence, and $801,950 for a mortgage secured by a 4-family residence'; 'adjusted effective January 1 of each year'; 'in the housing price index maintained by the Director of the Federal Housing Finance Agency'; 'is a decrease, then no adjustment shall be made for the next year'; 'Declines in the house price index shall be accumulated'; 'increased by not to exceed 50 per centum with respect to properties located in Alaska, Guam, Hawaii, and the Virgin Islands'; '115 percent of the median house price for such size residence exceeds the foregoing limitation'; 'to the lesser of 150 percent of such limitation for such size residence or the amount that is equal to 115 percent of the median house price in such area' · Checked October 17, 2026

3. For Fannie Mae, it can only purchase loans up to a certain dollar amount, the conforming loan limit, imposed under its federal charter; the limits are based on the original loan amount, are subject to change annually and vary with the number of units in the property and its location; there are baseline (also called general) limits, which apply to the majority of the loans it buys, and high-cost area limits, determined by its regulator and varying across the country; and high-balance loans are subject to the high-cost area limits.

   Sources 3 · Selling Guide B2-1.5-01, Loan Limits (02/02/2022): 'Fannie Mae can only purchase loans up to a certain dollar amount'; 'This dollar amount is known as the conforming loan limit'; 'imposed under its federal charter as amended by law'; 'are based on the original loan amount of the loan'; 'The limits are subject to change annually and vary, depending upon the number of units in the property and the property's location'; 'baseline (also known as'; 'The baseline limits apply to the majority of the loans that Fannie Mae purchases'; 'as determined by Fannie Mae's regulator'; 'The high-cost area loan limits vary across the country'; 'High-balance loans are subject to the high-cost area loan limits' · Checked October 17, 2026

4. Under federal law (12 U.S.C. §1709(b)(2)), an FHA loan on a single-family home may not exceed the lesser of 115 percent of the area's median single-family house price, as determined by HUD, or 150 percent of the Freddie Mac limit; it may not be lower than 65 percent of that limit (or the area's limit on October 21, 1998, if greater); it also may not exceed 100 percent of the appraised value; the 'area' is a metropolitan statistical area; and the area's median price is that of the county in the area with the highest median price.

   Sources 4 · 12 U.S.C. §1709(b)(2)(A)-(B): 'in the case of a 1-family residence, 115 percent of the median 1-family house price in the area, as determined by the Secretary'; '150 percent of the dollar amount limitation determined under the sixth sentence of such section 1454(a)(2)'; '65 percent of the dollar amount limitation determined under the sixth sentence of such section 1454(a)(2)'; 'not to exceed 100 percent of the appraised value of the property'; 'means a metropolitan statistical area'; 'the median 1-family house price of the county within the area that has the highest such median price' · Checked October 17, 2026

5. According to HUD Handbook 4000.1, an FHA-insured mortgage cannot exceed the Nationwide Mortgage Limits; under most programs the maximum mortgage is the lesser of the limit for the area or a percentage of the property's Adjusted Value; limits are calculated from median house prices under the statute, set by metropolitan statistical area and county, and FHA publishes updated limits for each calendar year; they fall at or between the low-cost and high-cost area limits; and the upfront mortgage insurance premium (UFMIP) is not counted when calculating those limits.

   Sources 5 · HUD Handbook 4000.1 (last revised 8/12/2026), II.A.2.a, Maximum Mortgage Amounts: 'A Mortgage that is to be insured by FHA cannot exceed the Nationwide Mortgage Limits'; 'the maximum Mortgage is the lesser of the Nationwide Mortgage Limit for the area, or a percentage of the Adjusted Value'; 'Mortgage limits are calculated based on the median house prices in accordance with the statute'; 'set by Metropolitan Statistical Area (MSA) and county'; 'FHA publishes updated limits effective for each calendar year'; 'at or between the low-cost area and high-cost area limits'; II.A.2.e.i(A): 'The UFMIP is not considered when calculating the area-based Nationwide Mortgage Limits and LTV limits' · Checked October 17, 2026

6. According to the CFPB, FHA loans have a maximum loan amount that varies by county.

   Sources 6 · FHA loans (page last modified Jun. 30, 2025): 'Have a maximum loan amount that varies by county' · Checked October 17, 2026

7. According to the CFPB, a conventional loan simply means one that is not part of a specific government program, and there are two main categories: conforming and non-conforming; conforming loans have maximum amounts set by the government and their other rules set by Fannie Mae or Freddie Mac; there is one limit in most counties and a higher one in high-cost counties; a 'conforming jumbo' loan is a conforming loan above the general limit, up to the county limit, available only in certain counties, with a maximum that varies by county; for a jumbo (non-conforming) loan above that county limit, rules vary by lender, but you usually need good credit and a high down payment; non-conforming loans are less standardized, and eligibility, pricing and features can vary widely by lender, so it is important to shop around and compare several offers; and if you are considering one, ask whether you could qualify for a conforming or FHA loan instead and never decide before getting your official Loan Estimates.

   Sources 7 · Conventional loans (page last modified Oct. 16, 2024): 'just means that the loan is not part of a specific government program'; 'There are two main categories of conventional loans'; 'Conforming loans have maximum loan amounts that are set by the government'; 'Other rules for conforming loans are set by Fannie Mae or Freddie Mac'; 'in most counties'; 'in high-cost counties'; 'to county limit'; 'Only available in certain counties'; 'Maximum loan amount varies by county'; 'Jumbo loan for amounts greater than the Conforming Jumbo limit in your county'; 'Rules vary by lender, but usually need good credit and a high down payment to qualify'; 'Non-conforming loans are less standardized'; 'it's particularly important to shop around and compare several offers'; 'Ask if you could qualify for a conforming or FHA loan instead'; 'Never make a final decision about which loan to take before getting your official Loan Estimates' · Checked October 17, 2026

8. According to the CFPB, all government-backed loans (FHA, USDA and VA) are qualified mortgages, while all others, including conventional loans backed by Fannie Mae and Freddie Mac and jumbo loans, must meet special requirements to qualify.

   Sources 8 · What is a Qualified Mortgage? (last reviewed Jan 02, 2025): 'Types of qualified loans include all government-backed loans'; 'and jumbo loans must meet special requirements to be considered qualified loans' · Checked October 17, 2026

9. According to VA, if you have full entitlement you do not have a loan limit, as long as you can afford the loan and the appraisal supports the purchase price; your lender still has to approve you; the maximum VA loan on a property is the appraised value or the purchase price, whichever is lower; and if you do not have full entitlement, your remaining entitlement is based on the county loan limit, because VA home loan limits are the same as FHFA's limits.

   Sources 9 · VA home loan entitlement and limits: 'You don't have a loan limit (as long as you can afford the loan amount and the property appraisal supports the purchase price of the home)'; 'your lender will still need to approve you'; 'The maximum VA loan on an individual property is either the appraised value of the property or the purchase price, whichever is lower'; 'your remaining bonus entitlement is based on the county loan limit'; 'VA home loan limits are the same as the Federal Housing Finance Agency (FHFA) limits' · Checked October 17, 2026

10. HUD-approved housing counselors give independent advice on buying, renting, defaults and credit, often at little or no cost.

    Sources 10 · Find a Housing Counselor: 'Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'they can offer independent advice, often at little or no cost to you' · Checked October 17, 2026