Pennymac Matches UWM Loan Limit

EDITOR'S UPDATE: On November 25, the Federal Housing Finance Agency (FHFA) announced that the conforming loan limit (CLL) values for mortgages Fannie Mae and Freddie Mac will acquire in 2026 will be $832,750.

Pennymac has joined United Wholesale Mortgage in raising its conforming loan limit on conventional and VA loans to $819,000.

A day after UWM raised its ceiling, Pennymac matched the move. But unlike its competitor, the wholesale and correspondent lender also hiked its ceiling in Alaska and Hawaii to $1,228,500. Other lenders are expected to follow suit.

The official limit on loans that can be purchased or securitized by Fannie Mae and Freddie Mac is $806,500. The ceiling for 2026 won’t be announced until Thanksgiving. Any increase will be driven by October-to-October changes in house prices. 

The 1.5% increase set by Pennymac and UWM is in line with the price appreciation forecasts from the Mortgage Bankers Association, which estimated that national home price appreciation will slow to an annual rate of 1.8% in the third quarter.

In its delegated announcement, Pennymac reminded lenders that credit reports cannot be older than 120 days, and that loan applications must be updated after that time. Applications rejected after a re-run “may be subject” to repurchase unless the sole reason is due to a difference between the company’s new loan limit and the official one.