If you’re thinking about buying a home in San Francisco next year, I have good news: The conforming loan limits will be higher in 2026—$1,249,125 for single-family homes and condos.
How exactly do conforming loans benefit buyers? In short, you’ll get a better interest rate and lenders will be more flexible on credit scores and down payment amounts. If you borrow more than that $1,249,125, it’s considered to be a jumbo loan, which doesn’t offer as favorable interest rates and terms.
Multi-unit buyers will also get more loan leeway. The maximum conforming loan limits are:
2 units: $1,599,375
3 units: $1,933,200
4 units: $2,402,625
Quick background: The Federal Housing Finance Agency sets the loan limits each year and applies to mortgages that government-sponsored agencies Fannie Mae and Freddie Mac acquire. These two agencies stabilize our housing market by buying and packaging up mortgages, and then selling them to investors. This creates a secondary mortgage market, keeping things moving and resulting in lower interest rates for consumers.
It’s an excellent time to consult with a mortgage lender to see what you can qualify for in 2026. I think this new conforming loan limit will motivate buyers to get into the San Francisco market next year, and I’m happy to connect you with a trusted lender if you’d like to speak with one. Get in touch with me at eileen@insidesfre.com and I’ll hook you up.