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
The two tests
Size: the loan amount must not exceed the conforming loan limit, which rises to as much as $1,249,125 in high-cost counties. A bigger loan is a 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.
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 for the other requirements.
Related terms
- Conventional loan, the wider category
- Loan-to-value ratio, which sets your down payment and PMI
Sources
- FHFA — 2026 baseline conforming loan limit (one-unit); 2026 high-cost area conforming ceiling (one-unit) (2026 limit)
- CFPB: Conventional loans
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.