Texas Conventional Loan Limits 2026: County-by-County Conforming Caps

Texas Conventional Loan Limits 2026: County-by-County Conforming Caps

Why the FHFA Loan Limit Number Sitting at $832,750 Changes Everything for Texas Buyers in 2026

Every year, the Federal Housing Finance Agency (FHFA) sets the maximum loan amount that Fannie Mae and Freddie Mac will buy from lenders. That number, called the conforming loan limit, determines whether a buyer gets conventional (conforming) pricing or pays jumbo rates. For 2026, the FHFA announced on November 25, 2025 a baseline conforming loan limit of $832,750 for one-unit properties, an increase of $26,250 over the 2025 limit of $806,500. That is a 3.26% increase, tracking home price appreciation.

For Texas buyers, the 2026 limit matters in a very specific way: every single one of Texas's 254 counties sits at exactly the same baseline $832,750 limit. Texas has no high-balance or high-cost county designations. That means the jumbo threshold in Harris County (Houston) is the same as in Travis County (Austin), Collin County (Plano/McKinney), and every other county in the state: the moment your loan exceeds $832,750, you are in jumbo territory.

TL;DR: The 2026 conforming loan limit for all Texas counties is $832,750 for a single-family home (up from $806,500 in 2025). Texas has no FHFA-designated high-cost counties. Any loan above $832,750 is a jumbo loan statewide, requiring its own underwriting standards: typically 10%-20% down, 6 months of reserves, stronger credit requirements, and higher rates. Houston buyers shopping in the $700,000-$900,000 range need to understand how the $832,750 threshold affects their loan structure, pricing, and down payment strategy. Multi-unit limits for 2-4 unit properties also increased proportionally.

FHFA 2026 Conforming Loan Limit: How the Number Is Set

The FHFA sets conforming loan limits each November for the following calendar year using a formula established by the Housing and Economic Recovery Act (HERA). The formula ties annual limit increases to changes in the average home price index for single-family homes as measured by FHFA's own House Price Index (HPI).

For 2026, the FHFA's November 2025 announcement confirmed that average home values increased enough nationally to justify a $26,250 increase. The new limits take effect for any loan delivered to Fannie Mae or Freddie Mac in calendar year 2026, per Fannie Mae's Lender Letter LL-2025-04.

Baseline vs High-Cost Areas

HERA created a two-tier system. The baseline limit ($832,750) applies in most of the country. In areas where 115% of the local median home value exceeds the baseline, FHFA can designate a higher limit, called a high-balance or high-cost limit. The ceiling for high-cost areas is 150% of the baseline, which equals $1,249,125 for one-unit properties in 2026.

Texas's median home values, even in Austin and Dallas, did not reach the threshold required to trigger a high-cost designation for any county in 2026. This is not unusual; Texas has historically been a baseline-only state despite significant home price appreciation, because the HERA formula compares the county's median home value to the baseline floor, and Texas values across most counties have not sustained the ratios seen in coastal California, Hawaii, or the New York metro.

2026 Conforming Loan Limits: All Texas Counties at a Glance

Because no Texas county has a high-balance designation, the baseline limits apply uniformly. Here are the 2026 conforming loan limits for all Texas counties, including the major metros:

Source: FHFA 2026 Conforming Loan Limit Values; Fannie Mae 2026 Loan Limits; Freddie Mac 2026 Loan Limits

The uniformity across counties is the defining characteristic of Texas's lending landscape. A buyer in The Woodlands (Montgomery County) and a buyer in central Austin (Travis County) face the identical conforming limit and the identical jumbo threshold.

What Happened to the Travis County / Austin High-Balance Designation?

Many buyers and some agents recall that Austin's Travis County was a high-balance area in prior years, with loan limits above the national baseline. That changed. As of 2025 and continuing into 2026, Travis County's conforming loan limit is $832,750, the same as every other Texas county.

This happened because FHFA's HERA formula requires that 115% of the local median home value exceed the baseline floor to maintain a high-balance designation. Austin's home value appreciation, while significant in 2021-2022, was followed by a correction in 2023-2024 that brought median values back below the threshold needed to sustain elevated limits.

The practical consequence: Austin buyers who financed a home in 2022 or 2023 at a high-balance loan amount above the then-current baseline would today be in the same loan tier as a Houston buyer at the same balance. For 2026 purchase transactions in Austin, there is no pricing advantage from a high-balance designation; any loan above $832,750 is treated as jumbo by Fannie Mae and Freddie Mac.

Conforming vs Jumbo: The Pricing Impact That Matters

The distinction between a conforming loan and a jumbo loan is not just administrative. It affects rate, underwriting, reserves, and down payment requirements in ways that compound on large balances.

Rate Differential

Conforming loans benefit from the implicit backing of Fannie Mae and Freddie Mac, which makes them more liquid in the secondary market. Jumbo loans are held by the originating bank or sold to private investors, who demand a premium for the credit risk. In 2026 market conditions, the jumbo premium over a 30-year conforming rate typically runs 0.25%-0.50% for high-quality borrowers (740+ FICO, 20% down), but can expand to 0.50%-1.00% or more for borrowers with tighter financials or lower down payments.

On a $900,000 jumbo loan, a 0.375% rate premium equals $3,375 in additional annual interest in year one. Over a 30-year term at a 6.75% rate vs a 7.125% jumbo rate, the cumulative difference exceeds $70,000.

Underwriting Differences

Conforming loans (Fannie Mae and Freddie Mac) use automated underwriting systems (AUS: Desktop Underwriter and Loan Product Advisor). Jumbo loans use manual underwriting with bank-specific overlays, meaning:

The reserve requirement is particularly impactful. A buyer purchasing a $1,000,000 home with 20% down ($200,000) and a $800,000 jumbo loan would need to demonstrate 6 months of PITI in liquid reserves post-closing. If monthly PITI is $5,800, that is $34,800 in reserves that must sit untouched in verified accounts after closing in addition to the down payment. This is why jumbo loans often require buyers to have $280,000-$300,000+ in total accessible assets to purchase a $1M home.

The Houston Buyer Problem: $700,000 to $900,000 Purchase Range

Houston presents a specific challenge that this limit defines. The city's luxury and upper-move-up market has a large cluster of homes priced between $700,000 and $1,100,000, particularly in areas like:

• Spring Branch / Memorial (77055, 77024): Single-family homes $700K-$1.4M
• Tanglewood / Briargrove (77027, 77063): $750K-$2M+
• West University Place (77005): Median over $1M
• The Woodlands Sterling Ridge (77382): $600K-$1.4M
• Katy Cinco Ranch luxury sections (77494): $650K-$1.1M

A buyer purchasing at $875,000 with 10% down ($87,500) would have a loan of $787,500. At 10% down, that loan falls under the $832,750 conforming limit and qualifies for conventional conforming pricing. The buyer avoids jumbo rates.

A buyer purchasing the same price with 5% down ($43,750) would have a loan of $831,250, which still falls under $832,750. Barely conforming.

Now consider a buyer at $950,000 with 10% down ($95,000): loan = $855,000. That is $22,250 over the conforming limit. That buyer is in jumbo territory, paying jumbo rates and meeting jumbo reserve requirements. The $22,250 excess balance costs the buyer a rate premium and potentially requires substantially more reserves.

The Loan Engineering Decision

Buyers in the $875,000-$950,000 range face a real choice:

1. Increase down payment to bring the loan under $832,750 (conforming)
2. Accept jumbo terms and rates
3. Restructure the purchase price if possible

On a $950,000 purchase, bringing the loan to $832,750 requires a down payment of $117,250 (12.34%). That is higher than the typical 10% target, but may cost less long-term than carrying a jumbo rate premium of 0.375%-0.50% over 30 years. A loan officer can run the break-even math: at what down payment does the rate savings justify the larger upfront equity commitment?

Conventional 97: 3% Down Within Conforming Limits

The Conventional 97 program allows first-time buyers to put as little as 3% down on a conforming conventional loan, with no income caps (unlike government programs). For a Texas buyer at the conforming limit, that means:

• Maximum loan: $832,750
• Minimum 3% down: $25,756
• Maximum purchase price on a Conventional 97: approximately $858,506

This is the most aggressive conventional entry point available. The trade-off is Private Mortgage Insurance (PMI), which will be required until the loan reaches 80% loan-to-value (LTV). PMI on a 97% LTV loan with a 740+ FICO typically runs 0.45%-0.65% of the loan balance annually, or roughly $312-$451 per month on an $832,750 loan. PMI can be canceled once you reach 20% equity (80% LTV), unlike FHA MIP on 30-year loans with under 10% down.

Conventional 97 vs FHA at the Conforming Limit

The FHA loan limit for most Texas counties in 2026 is $524,225 for a single-unit home (with some metros slightly higher). This means buyers seeking to purchase above $544,000 with 3.5% down cannot use FHA at all in most Texas counties; they must use conventional. This is why understanding conforming loan limits is critical, not just for jumbo buyers but for any mid-range buyer in Harris, Fort Bend, or Montgomery County.

DFW Metro: Collin, Denton, Dallas, Tarrant County Limits

The Dallas-Fort Worth metroplex is Texas's largest and fastest-appreciating major market. Despite sustained median price growth in Collin County (Plano, McKinney, Allen) and parts of Dallas County (Highland Park, University Park), all four core DFW counties remain at the $832,750 baseline.

Buyers in DFW's premium submarkets face the same conforming/jumbo boundary as Houston buyers. Key DFW purchase scenarios:

• Plano (Collin County), $890,000 purchase, 10% down: Loan = $801,000. Conforming, conventional pricing.
• Highland Park (Dallas County), $1,200,000 purchase, 20% down: Loan = $960,000. Jumbo. Requires 6+ months reserves, jumbo underwriting.
• Fort Worth Westside (Tarrant County), $750,000 purchase, 15% down: Loan = $637,500. Conforming.
• Frisco (Collin County), $900,000 purchase, 7% down: Loan = $837,000. Jumbo by $4,250. Buyer should consider whether $4,250 more down payment changes the financing picture significantly.

The Frisco example illustrates why buyers and their agents should run the conforming limit math on every transaction in the $800K-$950K range. A small adjustment in down payment can shift the loan from jumbo to conforming, changing rates, reserve requirements, and lender options.

San Antonio and Bexar County: Alamo City Market and Limits

San Antonio's Bexar County sits at the same $832,750 limit as every other Texas county. San Antonio's housing market has lower median prices than Austin, Dallas, or Houston, meaning fewer buyers are affected by the jumbo threshold in Bexar County. However, the growing premium market in Stone Oak (78258), Alamo Heights (78209), and new luxury development in La Cantera and Cibolo Canyon (78255) is pushing more transactions toward or above the conforming threshold.

Bexar County buyers at $900,000 with standard 20% down ($180,000) will carry a $720,000 loan, well within conforming limits. But a buyer at $960,000 with 10% down carries an $864,000 loan, firmly in jumbo territory. The same loan engineering considerations apply as in Houston and DFW.

What the $832,750 Limit Means for 2-4 Unit Investment Properties

Texas investors buying small multifamily properties (duplexes, triplexes, fourplexes) gain significant benefit from the conforming limits because the multi-unit limits scale substantially. All Texas counties use:

Source: Freddie Mac 2026 Loan Limit Values

An investor purchasing a fourplex in Houston's Heights neighborhood (77008) or the East End (77003) at $1,400,000 with 25% down ($350,000) carries a $1,050,000 loan, which falls under the $1,601,750 four-unit conforming limit. That transaction uses conforming pricing. The same investor who buys a single-family rental at $900,000 with 25% down carries a $675,000 loan, also conforming. The multi-unit limits make owner-occupant duplex and triplex purchases in Houston's near-urban neighborhoods particularly attractive from a financing perspective.

Owner-occupants (buyers who live in one unit of a 2-4 unit property) can put as little as 5% down on conforming multi-unit loans, making this a viable house-hacking entry point in Texas markets.

Jumbo Loans in Texas: Rates, Reserves, and Lender Options

When a Texas buyer needs a loan above $832,750, they enter the jumbo market. Here is what that means practically in 2026.

Who Offers Jumbo Loans in Texas

Major national banks (JPMorgan Chase, Wells Fargo, Bank of America), regional Texas banks (Frost Bank, Comerica, Culberson), and specialty jumbo lenders (United Wholesale Mortgage's jumbo channel, Angel Oak, Newrez) all originate jumbo loans. Most retail lenders have a jumbo product, but the overlays and pricing vary significantly. A buyer with a $900,000 loan should get quotes from at least three lenders; rate differences of 0.25%-0.50% on a $900,000 balance equal $2,250-$4,500 per year.

Typical Jumbo Requirements in Texas (2026)

• FICO minimum: 700-720 for most programs; 680 for select lenders with higher LTV restrictions
• Down payment: 10% minimum for $832,750-$1.5M; 20% for many programs above $1.5M
• Cash reserves: 6-12 months PITI post-closing (verified, liquid, in the borrower's own accounts; gift funds excluded from reserves)
• DTI maximum: 43%-45%; some bank portfolio products go to 49% for strong-asset borrowers
• Self-employment: 24-month average income from tax returns; some programs at 12 months with 12-month bank statement loans at 0.375%-0.75% premium
• Property type: Single-family, warrantable condos; non-warrantable condos and some rural properties excluded

Bank Statement Jumbo Loans

Self-employed buyers in Houston who cannot show sufficient qualifying income on tax returns (because they write off heavily) can access 12- or 24-month bank statement programs from non-QM lenders. These programs typically require 20% down minimum, carry rates 0.50%-1.00% above standard jumbo, and go up to $3M-$4M in loan size. They are not conforming products and are not sold to Fannie Mae or Freddie Mac; they are lender-portfolio or private investor products.

How to Use This Guide Alongside Your Pre-Approval

Understanding loan limits is step one, but limits alone do not determine how much house you can buy. Your qualifying income, existing debt, credit score, and asset position all interact with the conforming/jumbo threshold to determine your real ceiling. This guide pairs with our Texas pre-approval vs pre-qualification guide, which explains how lenders calculate your maximum loan. Understanding the full picture of upfront costs requires our Texas closing costs guide. Your credit score will determine which tier of pricing you receive on both conforming and jumbo loans; see our credit score requirements to buy a home in Texas for the detailed impact. When reviewing a Loan Estimate or Closing Disclosure, our guide to reading the Texas Closing Disclosure explains every fee line. And if you are evaluating which Houston suburbs keep you under the conforming threshold while offering the best value, our best Houston suburbs for the Energy Corridor provides neighborhood-by-neighborhood pricing data.

Frequently Asked Questions

Does Texas have any high-balance conforming loan counties in 2026?

No. All 254 Texas counties sit at the $832,750 baseline conforming limit for one-unit properties in 2026. Texas has no FHFA-designated high-cost counties. This means there is no "in-between" high-balance tier in Texas: any loan above $832,750 is jumbo. Some buyers recall Austin's Travis County being a high-balance area in earlier years; that designation lapsed after home values corrected from the 2021-2022 peak and the HERA formula no longer supported a higher limit.

What was the Texas conforming loan limit in 2025?

The 2025 conforming loan limit for all Texas counties was $806,500 for one-unit properties. The 2026 increase to $832,750 represents a $26,250 (3.26%) gain. Multi-unit limits also increased: 2025 two-unit was $1,032,650 (now $1,066,250), three-unit was $1,248,150 (now $1,288,800), four-unit was $1,551,250 (now $1,601,750). Buyers who locked a rate or got pre-approved in late 2025 under 2025 limits may benefit from the 2026 increase if their loan closes in 2026.

How much down payment do I need to stay under the conforming limit on a $900,000 purchase in Houston?

On a $900,000 purchase, you need your loan to be at or below $832,750. That requires a down payment of at least $67,250 (approximately 7.47%). If your lender requires 10% down as a minimum for their conforming product, that is $90,000 down and a $810,000 loan, still under the limit. The mathematical minimum to stay conforming on a $900,000 purchase is a $67,250 down payment, but most lenders impose their own minimums (typically 5%-10%) independent of the conforming limit.

What are the jumbo loan reserve requirements in Texas in 2026?

Most jumbo lenders require 6-12 months of PITI (principal, interest, taxes, and insurance) in verified liquid reserves after closing. For a $1,000,000 Houston home with a $200,000 down payment and an $800,000 jumbo loan, if the monthly PITI is approximately $5,800, the lender requires $34,800-$69,600 in verified reserves post-closing. Reserves must be in the borrower's own accounts (checking, savings, money market, or vested retirement accounts at 60%-70% value). Gift funds, unsourced deposits, and equity from other real estate are generally not accepted as reserves.

Can I use down payment assistance programs on a jumbo loan in Texas?

Most state DPA programs (TDHCA, TSAHC) are structured around conforming loan products and cannot be combined with jumbo financing. The City of Houston HAP and Harris County DAP also require conforming first mortgages. A buyer who needs a loan above $832,750 is generally purchasing above the price range where these programs apply. The exception is if a buyer brings enough down payment to keep the loan under $832,750 on a higher-priced home; in that case, the first lien can be conforming and potentially paired with DPA, though program purchase price limits would still apply.

Does the conforming loan limit apply to FHA loans in Texas?

FHA loans have separate limits set by HUD, which are lower than the FHFA conforming limit. For most Texas counties in 2026, the FHA loan limit for one-unit properties is $524,225 (the national floor). Some Texas metro areas (including the San Antonio MSA) carry slightly higher FHA limits due to local median home price data; Bexar County's FHA limit is approximately $557,750. Travis County (Austin) carries an FHA limit of $571,550. These FHA limits are separate from and unrelated to the FHFA conforming limit; they use a different formula and are published by HUD's Office of Housing at entp.hud.gov.

Talk to Erick Harbert About Loan Structuring in the Houston Market

Whether you are purchasing a home right at the conforming threshold or stepping into jumbo territory above $832,750, loan structuring decisions in this price range have real long-term cost implications. Erick Harbert and the Harbert Real Estate Group at Realty Right work with buyers across Spring, The Woodlands, Katy, Cypress, and Houston's inner loop to help navigate these financing decisions before going under contract.

Erick Harbert
Harbert Real Estate Group at Realty Right
6605 Cypresswood Dr Ste 300, Spring TX 77379
Phone: (281) 305-2520
Email: [email protected]
Website: harbertgroup.com

Contact Erick today to discuss your purchase price range, loan structure options, and which lenders are currently offering the best conforming and jumbo pricing for your specific financial profile.