By ALEX VEIGA, Associated Press

The Federal Housing Finance Agency is increasing the size of home loans that the government can guarantee against default as it takes into account rising housing prices.

Beginning next year, mortgage buyers Fannie Mae and Freddie Mac will be able to acquire loans of up to $832,750 on single-family homes in most of the country, the agency said Tuesday.

The new conforming loan limit is a 3.3% increase from its 2025 level.

FHFA oversees Fannie Mae and Freddie Mac, which buy home loans from banks and other lenders, guaranteeing them against default. The loans are then bundled into securities sold to investors.

But FHFA sets limits to the size of the loans that Fannie and Freddie can buy. Such loans are known as conforming loans, while mortgages above the co

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