2027 Conventional Loan Limits Increase to $845,000: What Homebuyers Need to Know
If you’re planning to buy a home in 2027, you may have more flexibility when it comes to conventional financing. 2027 conventional loan limits are increasing, allowing eligible homebuyers to qualify for a larger conventional mortgage before needing to consider a jumbo loan.
For a one-unit property in most areas of the United States, the 2027 conventional loan limit is $845,000, an increase from the 2026 limit of $832,750.
Here’s what the increase could mean for homebuyers and homeowners considering a move in 2027.
What Are the 2027 Conventional Loan Limits?
Conventional loan limits, also known as conforming loan limits, establish the maximum mortgage amount that can generally be financed through conventional loans eligible for purchase by Fannie Mae and Freddie Mac.
For 2027, the conventional loan limits are increasing for homes with up to four units.
| Property Type | 2027 Conventional Loan Limit |
|---|---|
| 1-unit home | $845,000 |
| 2-unit home | $1,081,950 |
| 3-unit home | $1,307,800 |
| 4-unit home | $1,625,350 |
The $845,000 limit applies to one-unit properties in the standard-limit areas of the contiguous United States. Higher limits may apply in certain high-cost areas.
What Is a Conventional Loan?
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the Federal Housing Administration (FHA), Department of Veterans Affairs (VA), or U.S. Department of Agriculture (USDA).
Many conventional mortgages are considered conforming loans because they meet the loan limits and other requirements established for purchase by Fannie Mae or Freddie Mac.
Conventional loans are a popular option for homebuyers because they can offer competitive interest rates and flexible down payment options for qualified borrowers.
What Does the Higher 2027 Loan Limit Mean for Homebuyers?
The increase in the 2027 conventional loan limit could give qualified buyers more purchasing power.
For example, imagine you’re purchasing a home and need an $840,000 mortgage. Under the 2026 standard conforming limit of $832,750, that loan amount would exceed the standard conventional loan limit.
With the 2027 limit increasing to $845,000, an $840,000 mortgage would fall within the new standard conventional loan limit.
That could potentially allow a qualified borrower to use conventional financing rather than moving into a jumbo loan.
Keep in mind: The maximum conventional loan limit is not the same as the amount every borrower can qualify to borrow. Your income, credit history, debt-to-income ratio, assets, down payment, property and other factors will determine how much you can actually borrow.
Could the 2027 Loan Limit Help You Avoid a Jumbo Loan?
It could.
A jumbo loan is generally a mortgage that exceeds the applicable conforming loan limit for the property and location.
Because the 2027 conventional loan limit is higher, some homebuyers who previously would have needed a jumbo loan may now be able to qualify for conventional financing instead.
Whether a conventional or jumbo loan makes the most sense depends on your specific financial situation.
A GMFS Mortgage Loan Officer can help you compare your options and determine which loan program may best fit your home-buying goals.
How Much House Can I Afford With the 2027 Conventional Loan Limit?
The $845,000 conventional loan limit doesn’t mean you need to purchase an $845,000 home—or that you need an $845,000 mortgage.
Your total home-buying budget depends on several factors, including:
- Your household income
- Monthly debts
- Credit history and score
- Down payment
- Available assets
- Interest rate
- Property taxes and homeowners insurance
- Loan program and lender requirements
For example, a buyer purchasing a $900,000 home with a substantial down payment may be able to keep the mortgage amount within the conventional loan limit.
That’s why it’s important to look at your loan amount, not just the home’s purchase price.
Are Conventional Loan Limits the Same Everywhere?
No.
The $845,000 standard conventional loan limit applies to one-unit properties in most areas of the contiguous United States. Higher conventional loan limits may apply in designated high-cost areas.
Loan limits can also vary based on the number of units in the property.
If you’re buying in Louisiana, Texas, Mississippi, Tennessee, North Carolina, South Carolina, Virginia or another market where GMFS Mortgage lends, your GMFS Mortgage Loan Officer can help you determine the applicable loan limit for the property you’re considering.
A GMFS Mortgage Loan Officer can help you understand the conventional loan limit that applies to the property you’re considering and determine whether conventional financing, jumbo financing or another loan option may be appropriate.
When Do the 2027 Conventional Loan Limits Take Effect?
The 2027 loan limits apply to loans meeting the applicable 2027 eligibility requirements.
Because loan limits, underwriting guidelines and program requirements can change, homebuyers should work with their mortgage professional to confirm the current guidelines when they’re ready to apply.
Thinking About Buying a Home in 2027?
The increase in the 2027 conventional loan limits may give qualified homebuyers additional flexibility when purchasing a home.
Whether you’re a first-time homebuyer, moving up to a larger home, relocating or considering an investment property, understanding your financing options early can help you make a more informed decision.
Ready to find out how much you may qualify for?
Connect with a GMFS Mortgage Loan Officer to discuss your home-buying goals, financing options and potential loan amount.
Let’s make home happen.