For 2026, the Federal Housing Finance Agency (FHFA) baseline conforming loan limit for a single-family home is $832,750 (up from $806,500 in 2025). In designated high-cost housing markets (e.g., parts of California, New York, Seattle, and Hawaii), the conforming ceiling reaches up to $1,249,125 (150% of baseline) before loans are classified as jumbo mortgages.

Yes. While 43% is the traditional manual underwriting ceiling, modern Fannie Mae Desktop Underwriter (DU) and Freddie Mac Loan Product Advisor (LPA) Automated Underwriting Systems (AUS) routinely approve borrowers with DTIs up to 45% to 50% if supported by compensating factors such as a high credit score (740+), 6–12 months of liquid cash reserves, or a down payment of 20% or more.

Because DTI compares minimum monthly obligations against monthly income rather than total balances, paying off small balance debts with high monthly payments (such as a $300/mo personal loan or an auto loan with only 8 months remaining) frees up immediate purchasing power. Eliminating just $300/month in debts can increase your home purchasing power by roughly $40,000 to $50,000 at current interest rates.

Standard PITI covers Principal, Interest, Taxes, and Homeowners Insurance. Homebuyers should also prepare for: 1) One-time closing costs (typically 2% to 4% of purchase price), 2) Private Mortgage Insurance (PMI) if putting down under 20%, 3) Homeowners Association (HOA) dues where applicable, and 4) An ongoing home maintenance reserve of 1% to 2% of the property value annually.