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The 2026 Loan Limits Have Been Released

Washington, D.C. – U.S. Federal Housing (FHFA) today announced the conforming loan limit values (CLLs) for mortgages Fannie Mae and Freddie Mac (the Enterprises) will acquire in 2026. In most of the United States, the 2026 CLL value for one-unit properties will be $832,750, an increase of $26,250 from 2025.

National Baseline

The Housing and Economic Recovery Act (HERA) requires FHFA to adjust the Enterprises’ baseline CLL value each year to reflect the change in the average U.S. home price. Earlier today, FHFA published its third quarter 2025 FHFA House Price Index® (FHFA HPI) report, which includes statistics for the increase in the average U.S. home value over the last four quarters. According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 3.26 percent, on average, between the third quarters of 2024 and 2025. Therefore, the baseline CLL in 2026 will increase by the same percentage.

High-Cost Areas

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit value, the applicable loan limit will be higher than the baseline loan limit. HERA establishes the high-cost area limit in those areas as a multiple of the area median home value, while setting the ceiling at 150 percent of the baseline limit. Median home values generally increased in high-cost areas in 2025, which increased their CLL values. The new ceiling loan limit for one-unit properties will be $1,249,125, which is 150 percent of $832,750.

Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit and the ceiling loan limit for one-unit properties will be $1,249,125 and $1,873,675, respectively.

Due to rising home values, the CLL values will be higher in all but 32 U.S. counties or county equivalents.

Filed under: Blog, Uncategorized by Joseph S. Rivera
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The Key Word For 2026 is still Preparation

The Keyword for 2026: Preparation

Preparation is still the key for California homebuyers looking to succeed in the real estate market for 2026.

As the saying goes, “Proper Preparation Promotes Peak Performance.”

You are the driving force behind achieving peak performance in this intense market. Think of your Realtor as your performance coach, dedicated to helping you prepare for success. They understand that the best opportunities are secured by those who are the best prepared.

Buying a home can stir up a mix of emotions, from excitement to feeling overwhelmed. After all, purchasing real estate is a big deal—often the most significant investment of a lifetime. Here are a few essential tips to help you get ready for the journey of buying property in California’s 2026 marketplace:

1. Gather Key Documents

If you’re planning to finance your home purchase, start collecting the documents your loan professional will need to qualify you for a mortgage. Key documents include:

Personal Identification: Driver’s license, Social Security card, work visas, etc. Lenders must verify your identity as part of the loan process.
Federal Tax Returns & W2s/1099s for the past two years. If self-employed, include business tax returns and financial statements like profit & loss reports.
Recent Pay Stubs or Pension Statements covering the last 30 days.
Mortgage Statements or Rental Info: For homeowners, your latest mortgage statement and homeowner’s insurance. For renters, your landlord or property management contact.
Monthly Bank Statements for the past two months to verify funds for your down payment and other assets.
Credit Explanation Letters for any negative credit report entries.
List of Outstanding Debt with creditor names and account numbers.

2. Make Lists

Create two lists:

One for the features you need in your new home.
One for the features you want but can compromise on.

Share these with your agent so they can better guide your search. Update your list as needed and keep your agent in the loop.

3. Keep Notes

While your agent will keep track of the homes you visit, take your own notes when attending open houses. Share what you liked or didn’t like after each showing. This feedback will help your agent refine your search and zero in on the right home for you.

4. Stay Positive

Buying a home is a process, and it’s easy to get discouraged if things don’t move as quickly as you’d like. Remember, even after finding your dream home and making an offer, the closing process can take time. Stay patient and positive—your agent is working hard to find the perfect property for you.

5. Choose Your Realtor Coach Wisely

Your Realtor is more than just a guide—She or Him is your “coach” through the entire process. Choose someone you feel comfortable with, who you can freely communicate with, and who you trust to offer guidance. A great Realtor will make the entire experience smoother and less stressful.

With the right preparation and support, 2026 can be your year to secure the home of your dreams!

Filed under: Blog, Uncategorized by Joseph S. Rivera
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The Real Scoop On Commissions

You may be familiar with the traditional real estate commission model, where the seller provides the total agent commission, often between 5 and 6 percent of the sale price of the home.

That payment is then split between their listing agent and the buyer’s agent after closing.

Due to a series of lawsuits, settlements, and renewed scrutiny from the Department of Justice, this model has changed significantly, with the onus of paying for the buyer agent’s compensation potentially shifting more to the buyer. As a seller, you no longer have to offer buyer agent compensation as part of your listing agent’s commission to list with the multiple listing service (MLS).

If you’re looking to put your house on the market in the coming months, it’s vital to understand these shifts in the process so you can make informed decisions that work for your specific situation. Check out this guide to common questions regarding buyer agent commission to get a better gauge of how they work, why they matter to you as a seller, and whether it’s in your best interest to offer to pay it as a financial incentive.

How is the process of buyer agent commissions changing?
Previously sellers were required to offer buyer agent compensation as part of their listing on the multiple listing service (MLS). There were no mandates on the amount that had to be offered, meaning you could advertise a $0 commission if desired, but most sellers were advised by thier listinge agents to offer a standard percentage for thier area as an incentive for buyer agents to show and sell their properties to clients. In this sense, the commission was essentially presented as a routine marketing cost for sellers in order to get their property in front of as many qualified buyers as possible via the MLS.

Starting in July, however, sellers will no longer be permitted to mention buyer agent compensation in their MLS listings. Additionally, if their agent is a member of the National Association of Realtors® (NAR), buyers will be required to sign a buyer-broker agreement that states the type and amount of their agent’s compensation; this could be a commission based on the sale price of the home they buy, a flat fee, an hourly rate, or some other form of payment. Together, these two changes may lead to a shift that generally sees the buyer assuming the responsibility for paying their agent’s compensation as opposed to the seller.

Can Sellers still pay the buyer agent commission if they wish?
Yes, there is no hard-and-fast rule about who has to cover the buyer agent’s compensation. Sellers can certainly market their property with an offer to pay buyer’s agent commission in advance—just not on the MLS—as a way to attract more interest from buyer agents and, subsequently, their clients. A buyer may also ask you for help with it during closing, requesting it as a seller concession. In that instance, the seller will have the opportunity to negotiate how much, if any, of the commission they are willing to provide to help facilitate the sales process.

How much is the typical buyer agent commission?
Commissions are not fixed, but in most markets, they traditionally range somewhere between 5 percent to 6 percent of the home’s sale price. That is then split between the buyer and seller agents, meaning that each generally receives between 2.5 percent and 3 percent commission. With the changes following the settlement by the NAR, advocates for the rule change argue that this amount will to go down over time, potentially even by half. Of course predicting the future is not an exact science, so in the end we will just have to wait and see how all this plays out in the market in the coming years.

How does paying the buyer agent commission affect how much I get from the sale?
If you are covering the buyer agent commission, it is typically deducted from the proceeds of the sale before you receive your profit. Be sure to factor this into your calculations when determining how much you expect to earn from the sale of your home. It is always best practice for listing agents to provide thier sellers with a “Seller’s Net Proceeds Worksheet” with their best estimates of the closing costs and the esitimated seller’s net proceeds from the sale of the property.

When should I consider paying the buyer agent commission?
Sellers need to remember, different markets demand different strategies for enhancing their home’s appeal. In a slower market, sellers may feel the need to provide buyer agent compensation to compete against other listings in the same neighborhood. Conversely, in a more seller-friendly market with low inventory and many eager buyers, sellers may be able to offer little or no buyer agent compensation, secure in their home’s potential for a lucrative sale.

As a seller, you deserve transparency around the services that are included in the sale of your home and the way that both agents will be compensated. By working closely with your real estate agent, you can get your questions answered, make more informed decisions, and effectively navigate the logistics of getting your home sold

Filed under: Blog, Uncategorized by Joseph S. Rivera
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