2026 conforming loan limits in Illinois and Wisconsin: the line where a loan becomes a jumbo
Every November the Federal Housing Finance Agency resets the ceiling on loans Fannie Mae and Freddie Mac will buy. For 2026 that ceiling is $832,750 for a single-family home, and none of the counties Home State Bank serves are high-cost, so the same number applies from Crystal Lake to Appleton. Here is what it means when your loan lands above it.
Home State Bank mortgage teamCrystal Lake, IL · Appleton, WI · NMLS 478452Updated September 9, 20266-minute readThe 2026 numbers
The limits took effect January 1, 2026, and they apply by county. Ours are all at the national baseline:
| County | Conforming (Fannie/Freddie) | FHA |
|---|---|---|
| McHenry County, IL | $832,750 | $541,287 |
| Outagamie County, WI (Appleton) | $832,750 | $541,287 |
| Winnebago County, WI (Oshkosh, Neenah) | $832,750 | $541,287 |
| High-cost ceiling (not our counties) | $1,249,125 | $1,249,125 |
What changes above the line
A loan over $832,750 is a jumbo loan, and Fannie and Freddie won't buy it. That has three practical effects. Rates are set by whoever will hold or buy the loan instead of by the agencies. Underwriting gets more conservative, with larger reserves, lower debt ratios, and usually a bigger down payment. And documentation gets heavier, because the investor bears the whole risk.
A common way around it is a piggyback: a conforming first mortgage at $832,750 plus a second loan for the rest. It works when the second is small. It doesn't when the second is $200,000 at a HELOC rate.
Why a portfolio jumbo is a different animal
Most jumbo loans are sold to a handful of national investors with rigid boxes. Home State Bank holds jumbo loans on its own balance sheet, which means the person deciding your file is in our building, not in a queue. We can qualify on assets for a retiree with a large portfolio and modest W-2 income, count bonus and restricted-stock income the way an employer actually pays it, and finance a home on acreage or a lake lot that an out-of-state investor won't touch.
It also means pricing is set off our cost of funds. In some rate environments our portfolio jumbo has priced below the conforming 30-year fixed; in others it doesn't. We'll tell you which it is the week you apply.
Where the line actually bites locally
In McHenry County the limit covers nearly every sale; the median home is well under half of it. It comes up in Bull Valley, on the lakes in Crystal Lake and Lakewood, and on larger properties around Barrington Hills and Woodstock. In the Fox Valley it's rarer still, but lakefront on Lake Winnebago and custom builds in Greenville and Grand Chute cross it regularly. If you're building, remember the limit applies to the permanent loan amount, not the lot value.
Questions people ask
- Is McHenry County a high-cost area?
- No. McHenry County uses the 2026 baseline of $832,750. The high-cost ceiling of $1,249,125 applies only in designated markets, none of which are in our footprint.
- What is the FHA limit in Appleton?
- $541,287 for a one-unit home in Outagamie County for 2026, the same as every Illinois county and nearly every Wisconsin county.
- Do jumbo loans always need 20% down?
- No. Our portfolio jumbo programs start at 10% down for well-qualified borrowers. Investor jumbo programs vary; 20% is common but not universal.
This article is general information, not financial, tax, or legal advice, and not a commitment to lend. Program terms, limits, and rates change; confirm current figures with a loan officer. Home State Bank, N.A. NMLS 478452. Member FDIC · Equal Housing Lender.
