Federal Housing Finance Agency Sets Conforming Loan Limits

According to the Federal Housing Finance Agency, the baseline conforming loan limit for a single-family home across the continental United States is $832,750. In designated high-cost areas such as coastal California and the New York City and Washington, D.C. metro regions, the limit rises to a ceiling of 150%, reaching $1,249,125 for a one-unit property. Alaska, Hawaii, Guam, and the U.S. Virgin Islands automatically receive the elevated $1,249,125 tier everywhere within their borders, with Maui County in Hawaii scaling even higher to $1,299,500. Puerto Rico utilizes the standard $832,750 baseline with no high-cost tier.

Conforming Loan Limits by Property Units

Loan limits scale upward depending on the number of dwelling units on the property. For properties outside designated high-cost areas in the continental United States, the baseline limits are $1,066,250 for two-unit homes, $1,288,800 for three-unit properties, and $1,601,750 for four-unit structures. In designated high-cost counties across the continental U.S., those limits increase to $1,599,375 for two units, $1,933,200 for three units, and $2,402,625 for four units.

Exceeding these thresholds shifts a mortgage into jumbo territory. Lenders do not evaluate jumbo loans against a single national standard. Down payment requirements often start at higher amounts, and lenders frequently mandate substantial liquid cash reserves remaining after closing to demonstrate financial stability. Interest rates and annual percentage rates vary significantly depending on the borrower’s credit profile, loan size, and specific lender overlays.

Financing Strategies to Avoid Jumbo Loans

Borrowers close to the conforming threshold frequently utilize alternative financing structures to bypass jumbo underwriting requirements. Piggyback loans, such as an 80-10-10 split, divide the financing into a first mortgage that stays at or below the conforming limit and a smaller second mortgage, such as a home equity line of credit or fixed-rate home equity loan, to cover the remainder. This approach avoids a single jumbo loan by utilizing two conforming-friendly mortgages, which can simplify underwriting standards and secure a more favorable blended interest rate.

Borrowers can also bring additional cash to the closing table to reduce the total loan amount below the local conforming ceiling. Because individual lenders set independent underwriting criteria for non-conforming loans, obtaining quotes from multiple jumbo-specific lenders remains essential for comparing rates, fees, and reserve demands.