We have great news for all prospective and current homeowners in Connecticut! Fannie Mae has released its Lender Letter (LL-2025-04), confirming a significant increase in the Conforming Loan Limit Values (CLLs) for 2026, expanding your purchasing power across the state.
Increased Lending Power Starts January 1st
The Federal Housing Finance Agency (FHFA) has raised the limits, effective for loans delivered on or after January 1, 2026. This means that Burke Mortgage can now offer conventional financing for higher-priced properties without requiring a jumbo loan, which often has stricter underwriting guidelines.
The new baseline conforming loan limits for most of the contiguous U.S., including Connecticut, are:
Units2026 Baseline Loan LimitOne$832,750Two$1,066,250Three$1,288,800Four$1,601,750
UNITS
One
Two
Three
Four
2026 Baseline Loan Limit
$832,750
$1,066,250
$1,288,800
$1,601,750
High-Cost Area Benefits for Connecticut
Many counties in Connecticut are designated as high-cost areas, which qualify for even higher limits. The ceiling for the 1-unit high-cost area limit has been set at $1,249,125. If your desired property is in a high-cost county, you may be able to borrow up to this limit with a conventional high-balance loan.
Important Dates and Underwriting Flexibility
Lenders can begin utilizing these new limits almost immediately. Fannie Mae’s automated underwriting system, Desktop Underwriter (DU®), will implement the new 2026 limits on the weekend of December 6, 2025.
Crucially, if you had a loan application that was previously deemed “Ineligible” by DU solely because it exceeded the 2025 loan limit, your Burke Mortgage loan officer may not need to resubmit the casefile. If the original loan amount now complies with the new, higher 2026 limit, it can be delivered starting January 1st.
This change is a major win for anyone buying in Connecticut’s competitive housing market. Contact your Burke Mortgage team today to see how the higher 2026 conforming loan limits can open up new possibilities for your home purchase!