The 2027 loan limit for a 1-unit home could rise to $853,375 based on the most recent data available.
Each year, the Federal Housing Finance Agency (FHFA) reviews home price changes over the previous year to determine conventional loan limits for the upcoming year.
For 2027, the FHFA will review its House Price Index, or the “FHFA HPI®”, to determine new limits. Will those limits rise from 2026 levels?
2027 Conventional Loan Limit Prediction
Based on our estimates, conventional loan limits may rise from $832,750 in 2026 to $853,375 in 2027 for a 1-unit home in a standard area.
| Units | 2027 Standard Limits (est) | 2027 High-Cost Limits (est) |
|---|---|---|
| 1 | $853,375 | $1,280,075 |
| 2 | $1,092,675 | $1,638,750 |
| 3 | $1,320,750 | $1,980,875 |
| 4 | $1,641,450 | $2,461,750 |
Current 2026 Loan Limits
| Units | 2026 Standard Limits | 2026 High-Cost Limits |
|---|---|---|
| 1 | $832,750 | $1,249,125 |
| 2 | $1,066,250 | $1,599,375 |
| 3 | $1,288,800 | $1,933,200 |
| 4 | $1,601,750 | $2,402,625 |
How We Estimated 2027 Conventional Conforming Limits
To arrive at estimated 2027 loan limits, we plugged the most recent data available into the formula used by FHFA.
Each year, The FHFA determines conforming loan limits by comparing year-over-year third-quarter home prices.
For example, the FHFA reviewed home price changes from 2024 Q3 to 2025 Q3 to arrive at 2026 conforming loan limits.
If 2027 loan limits were based on 2026 Q2 data, the calculation would look like this:
= (2026 Q2 HPI – 2025 Q2 HPI) / 2025 Q2 HPI
= (424.28 – 414.02) / 414.02*
= 0.0248 (2.48%)
If 2027 loan limits were based on 2026 Q2 data, the conforming loan limit would increase 2.48% from $832,750 in 2026 to $853,375 in 2027.
Under this same logic, high-cost loan limits would increase from $1,249,125 in 2026 to roughly $1,280,075 in 2027 (high-cost limits are set at 150% of the standard limit).
Keep in mind that home price data may change considerably from Q2 and Q3. Since new 2027 limits will be based on 2026 Q3 data, there could be a larger or smaller increase, or no increase at all.
How Much Did 2026 Loan Limits Increase?
Conventional loan limits increased for 2026 as follows:
$806,500 in 2025 → $832,750 in 2026, an increase of $26,250 or 3.26%.
The formula used was:
(2025 Q3 HPI – 2024 Q3 HPI) / 2024 Q3 HPI
= (419.12 – 405.90) / 405.90*
= 0.0326 (3.26%)
When Can Applicants Use 2027 Loan Limits?
Most lenders will begin accepting 2027 loan limits as soon as they are announced by FHFA, some even earlier. As of this writing, at least one major lender has started accepting loans up to their own estimated 2027 limits.
With most lenders, borrowers may take advantage of 2027 limits starting in late November 2026, but check with your lender on their policy.
Can 2027 Conventional Loan Limits Decrease?
In a word, no. The FHFA follows rules that say conforming loan limits may not decrease even if the FHFA home price index decreases.
Instead, conventional loan limits would remain the same until home prices declined and rebounded to reach their previous highs. Only when home prices exceeded previous highs would loan limits start increasing again.
Should You Wait Until 2027?
Home prices are continuing to rise despite high rates. Waiting until 2027 to capture a larger conventional loan limit could end up costing you.
It might be better to use a jumbo loan.
You may can also combine a HELOC with a conventional loan if you qualify.
For example, you’re looking for a $1,000,000 home. Assuming current 2026 limits:
| Loan Attribute | Amount |
|---|---|
| Home Price | $1,000,000 |
| Down Payment | $100,000 |
| Remaining Loan Needed | $900,000 |
| 2026 Limit | $832,750 |
| Shortfall/HELOC Amount | $67,250 |
This structure keeps your loan in conventional territory, giving you more lenient underwriting compared to most jumbo loan programs.
Then, there’s a potential to refinance into a conventional loan in 2027 if loan limits increase or rates drop.
Conventional Loan Limits History
| Year | 1-Unit | Increase |
|---|---|---|
| 2027 (est) | $853,375 | 2.48% |
| 2026 | $832,750 | 3.26% |
| 2025 | $806,500 | 5.2% |
| 2024 | $766,550 | 5.6% |
| 2023 | $726,200 | 12.2% |
| 2022 | $647,200 | 18.0% |
| 2021 | $548,250 | 7.4% |
| 2020 | $510,400 | 5.4% |
| 2019 | $484,350 | 6.9% |
| 2018 | $453,100 | 6.8% |
| 2017 | $424,100 | 1.7% |
| 2016 | $417,000 | 0.0% |
| 2015 | $417,000 | 0.0% |
About Conventional Loans
Most conventional loans are regulated by Fannie Mae and Freddie Mac. Applicants with high credit scores get the best rates and mortgage insurance costs. Down payments can be as little as 3%, lower than the FHA minimum. Because of efforts of the Fannie and Freddie to expand availability of its products, conventional loans have become a favorite of first-time buyers who may not have qualified in the past.
*Note that loan limits are based on FHFA’s expanded-data indexes which is why the above figures differ from commonly-cited HPI numbers. Estimated loan amounts are rounded per FHFA standards.
