Conforming Loan

mortgage

Also known as: conforming loan, conforming mortgage

Updated · Written and reviewed by Konstantin Iakovlev

Detailed explanation

Conforming loans get the lowest mortgage rates because they're liquid (easily sold to Fannie/Freddie). Loans over the limit are "jumbo" loans, typically 0.25-0.50% higher rate, stricter qualifying (700+ credit score, 20%+ down, larger reserves). FHFA sets the limits annually (2025: $806,500 baseline; 2026: $832,750 baseline + 50% premium = $1,249,125 high-cost). High-cost areas: most CA coastal counties, NYC, DC metro, much of HI, parts of MA/CT/NJ. The standard conforming limit covers ~95% of US homes.

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