The FHFA has released its new loan limits for mortgages Fannie Mae and Freddie Mac will acquire in 2026.
The new limit will be $832,750 for most states – an increase of $26,250 from 2025. This was based on the latest FHFA Home Price Index.
For high cost areas, the new limit is $1,249,125.
Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit and the ceiling loan limit for one-unit properties will be $1,249,125 and $1,873,675, respectively.
Due to rising home values, the CLL values will be higher in all but 32 U.S. counties or county equivalents.
The FHFA recently announced its 2026 multifamily loan purchase caps for Fannie Mae and Freddie Mac, which are set at $88 billion for each enterprise, for a combined total of $176 billion to support the multifamily market.
To ensure a strong focus on affordable housing and underserved markets, U.S. Federal Housing will require that at least 50% of the enterprises’ multifamily businesses be mission-driven, affordable housing, FHFA says in a release.
Just like in 2025, multifamily loans that finance workforce housing will be excluded from the 2026 limits. All other mission-driven loans remain subject to the volume caps.
In a statement, Bob Broeksmit, president and CEO for the Mortgage Bankers Association, says the “$15 billion increase in the multifamily loan purchase caps to $88 billion for each GSE aligns with MBA’s expectations for the multifamily market in 2026.”
“Stable market conditions, strong maturity volumes, and a gradual decline in interest rates are expected to lift multifamily lending activity next year,” Broeksmit says. “The announced cap levels will help ensure the GSEs remain a reliable source of financing for rental properties, including those serving lower-income households and rural communities.”
“We support the continued cap exemptions for targeted workforce housing and appreciate FHFA’s willingness to adjust caps and mission-driven requirements if needed,” he adds. “MBA is committed to ensuring fair competition across all multifamily capital sources and to keeping affordability and availability a policy priority in 2026. We look forward to partnering with the Trump administration and Congress on efforts to increase rental housing supply and reduce costs for renters.”
Photo: Giorgio Trovato