UWM Hikes Its Loan Limit
Last week UWM said it will honor $819,000 as the new limit on one-unit conventional and VA loans
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.
United Wholesale Mortgage (UWM) has become the first – but certainly not the last -- to jump the gun on next year’s conforming loan limit.
The annual change in the ceiling isn’t usually announced until Thanksgiving. But last week, UWM said it will honor $819,000 as the new limit on one-unit conventional and VA loans until the Federal Housing Finance Agency makes the change official. The current ceiling for single-family loans is $806,500.
The move, the company said, allows brokers to offer larger loan amounts and enables more of their clients to avoid moving into high balance or jumbo loans, which typically come with higher rates and stricter underwriting guidelines.
Other UWM early conforming loan limits are: $1,048,500 for two-unit conventional loans (increased from $1,032,650), $1,268,000 three-unit loans (up from $1,248,150) and$1,575,000 for four-unit loans (increased from $1,551,250). The company did not say how it came up with these limits. The official ceiling is based on the average price of a houses nationally from one October to the next. Those figures won’t be tallied until early November at the earliest.
To adjust the limit, the FHFA uses the October-to-October percentage increase or decrease in the average house price, as indicated in the House Price Index report issued by the Federal Housing Finance Board. The formula is designed to reflect changes in the average price of a home, which is almost always in flux.
The lid usually – but not always – increases. From 2006 through 2016, a span of 11 years, it remained flat at $417,000. But it has never been allowed to fall. In 2024, it was $766,550.