# Conforming loan

> A conforming loan meets Fannie Mae or Freddie Mac rules and stays within the FHFA loan limit, so either can buy it. The two tests and a price example.

URL: https://mail.mortgage-math-us.com/glossary/conforming-loan/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**A conforming loan** is a conventional mortgage that meets Fannie Mae’s or Freddie Mac’s underwriting rules and is no larger than the conforming loan limit for its county — $832,750 for a one-unit home in most of the US in 2026.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| 2026 baseline limit, one-unit home | $832,750 | [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) | 2026 limit |
| 2026 high-cost area ceiling, one-unit home | $1,249,125 | [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) | 2026 limit |

## The two tests

**Size:** the loan amount must not exceed the [conforming loan limit](https://mail.mortgage-math-us.com/glossary/conforming-loan-limit/), which rises to as much as $1,249,125 in high-cost counties. A bigger loan is a [jumbo loan](https://mail.mortgage-math-us.com/glossary/jumbo-loan/).

**Rules:** credit, debt-to-income, loan-to-value, property and documentation standards from the Fannie Mae and Freddie Mac guides. A loan that fits the size limit but not the rules may be a lender’s portfolio loan or a [non-QM loan](https://mail.mortgage-math-us.com/glossary/non-qm-loan/).

Every conforming loan is conventional, but not every conventional loan conforms. FHA, VA and USDA loans have their own limits and aren’t called conforming, however small they are.

## Example: the price ceiling

The limit applies to the loan, not the price. In a county at the baseline limit, a buyer putting 20% down stays conforming up to a price of $1,040,938; with 10% down the ceiling is $925,278. Above that, a larger down payment can keep the loan conforming. See the [conventional loans guide](https://mail.mortgage-math-us.com/loan-types/conventional-loans/) for the other requirements.

## Related terms

- [Conventional loan](https://mail.mortgage-math-us.com/glossary/conventional-loan/), the wider category
- [Loan-to-value ratio](https://mail.mortgage-math-us.com/glossary/loan-to-value-ratio/), which sets your down payment and PMI

## Sources

- [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) — 2026 baseline conforming loan limit (one-unit); 2026 high-cost area conforming ceiling (one-unit) (2026 limit)
- [CFPB: Conventional loans](https://www.consumerfinance.gov/owning-a-home/conventional-loans/)
- [FHFA: Conforming loan limit values for 2026](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026)

_General information, not financial advice._