Freddie Mac’s Bulletin 2026-1 brings a meaningful change for buyers and homeowners in the greater Seattle area. Starting with applications dated April 12, 2026, high balance conforming loans are no longer eligible under the Home Possible program. For homebuyers in King, Pierce, and Snohomish counties, this change directly affects your low-down-payment options on higher-priced homes.
Here is what this means, who it affects, and what alternatives remain available.
What Is the Home Possible Mortgage Program?
Home Possible is Freddie Mac’s affordable lending program designed for low- to very-low-income borrowers. It allows down payments as low as 3-5% and includes income and geographic eligibility requirements. The program is popular with first-time buyers and buyers in higher-cost markets because it combines a low-down payment with conventional loan benefits such as cancellable mortgage insurance.
What Changed in Bulletin 2026-1?
Per Freddie Mac Bulletin 2026-1, effective for applications received on or after April 12, 2026:
Super conforming mortgages — also referred to as high balance conforming loans — are no longer eligible as Home Possible mortgages.
Additionally, the Bulletin made two other changes to Home Possible that apply to all loan amounts:
- Borrowers’ base earnings must be evaluated before any additional employment income (such as bonus, commission, overtime, or tips) can be considered.
- Unsecured loan proceeds may no longer be used as a source of funds.
The key change for Seattle-area buyers is the elimination of super conforming (high balance) loan eligibility. This applies to both new applications dated April 12, 2026 or later and to applications dated before April 12, 2026 with settlement dates on or after July 12, 2026.
What Is a High Balance Conforming Loan in King, Pierce, and Snohomish Counties?
King, Pierce, and Snohomish counties are federally designated high-cost areas. For 2026, the high balance conforming loan limit for a single-family home in these three counties is $1,063,750. This is meaningfully higher than the national baseline conforming limit of $832,750.
A high balance conforming loan falls between these two numbers — above the national baseline but at or below the county-specific ceiling. Any loan amount above $1,063,750 in these counties is a jumbo loan.
2026 Loan Limit Summary — King, Pierce, and Snohomish Counties
| Loan Type | 2026 Limit (1-Unit, Single-Family) |
|---|---|
| National Baseline Conforming | $832,750 |
| High Balance Conforming (King, Pierce, Snohomish) | $1,063,750 |
| Jumbo (above high balance limit) | Above $1,063,750 |
Who Is Affected by This Change?
This change affects buyers in King, Pierce, and Snohomish counties who were planning to use Home Possible with a loan amount between $832,750 and $1,063,750. These are buyers who:
- Need a low down payment (5%) on a higher-priced home
- Have incomes at or below area median income thresholds for Home Possible eligibility
- Were counting on Freddie Mac’s automated underwriting system (Loan Product Advisor) to approve their loan under Home Possible guidelines
If your loan amount is at or below $832,750, this change does not affect you — standard conforming Home Possible loans remain available.
What Are the Alternatives for Low Down Payment Loans on High Balance Amounts?
The good news: buyers in the Seattle metro area still have solid options for low-down-payment financing on higher loan amounts. Freddie Mac is not the only path to the closing table.
Fannie Mae HomeReady — Still Available with High Balance
Fannie Mae’s HomeReady program currently still allows high balance conforming loans with a minimum 5% down payment. HomeReady has similar income-based eligibility requirements to Home Possible and provides comparable access to low down payment conventional financing. If you qualified for Home Possible with a high balance loan amount, HomeReady through Fannie Mae’s Desktop Underwriter system is the natural first alternative to evaluate.
FHA Loans — Low Down Payment Up to the High Balance Limit
FHA loans are available in King, Pierce, and Snohomish counties with loan amounts up to the high balance conforming limit. FHA requires a minimum 3.5% down payment for borrowers with credit scores of 580 or higher. FHA mortgage insurance includes both an upfront premium and a monthly premium, which differs from conventional MI. For buyers whose income, credit, or debt-to-income ratio makes conventional financing challenging, FHA can be the right fit.
VA Loans — Zero Down for Eligible Veterans and Service Members
For eligible veterans, active duty service members, and surviving spouses, VA loans offer zero down payment financing with no mortgage insurance. VA loans do not have a formal high balance ceiling for borrowers with full entitlement, making them one of the most powerful financing tools available in high-cost markets like the Seattle area. If you have VA eligibility, this should always be evaluated first.
Jumbo Loans — Competitive Rates for Loan Amounts Above the Conforming Limit
If your purchase price requires a loan amount above $1,063,750, a jumbo mortgage is the path forward. Today, jumbo mortgage rates are competitive with conforming loan rates — this is not your grandfather’s jumbo loan with a punishing rate premium. Down payment requirements and underwriting standards vary by lender, but options with 10% or 20% down are available for well-qualified borrowers.
There are also specialty programs, like those designed for medical professionals aka the Doctor Loan that allows for higher loan amounts and no down payment.
Quick Comparison: Low Down Payment Options for Higher Loan Amounts in the Seattle Area
| Program | Min. Down | High Balance Eligible? | MI Required? | Income Limits? |
|---|---|---|---|---|
| Freddie Mac Home Possible (high balance) | N/A after 4/12/26 | No (eliminated) | Yes | Yes |
| Fannie Mae HomeReady (high balance) | 5% | Yes | Yes (cancellable) | Yes |
| FHA (high balance) | 3.5% | Yes | Yes (upfront + monthly) | No |
| VA (eligible borrowers) | 0% | Yes (no limit w/ full entitlement) | No | No |
Frequently Asked Questions
Does Freddie Mac Home Possible still exist after April 12, 2026?
Yes. Home Possible is still available for standard conforming loan amounts — meaning loan amounts at or below $832,750. The change from Bulletin 2026-1 only removes high balance (super conforming) loans from Home Possible eligibility. Buyers with loan amounts under the national baseline conforming limit are not affected.
What is the high balance conforming limit for King, Pierce, and Snohomish counties in 2026?
The high balance conforming limit for a single-family home in King, Pierce, and Snohomish counties is $1,063,750 for 2026. This is the maximum loan amount for any conventional conforming mortgage — including Fannie Mae HomeReady — in these counties.
Is Fannie Mae HomeReady still available for high balance loans in King County?
Yes. As of this writing, Fannie Mae has not made a similar change to HomeReady. HomeReady remains available for high balance conforming loan amounts with a minimum 3% down payment, subject to income eligibility requirements.
What if I have a Home Possible application in progress right now?
If your application was received before April 12, 2026, you are still eligible for Home Possible under the old guidelines — provided your loan settles before July 12, 2026. Applications received on or after April 12, 2026 must follow the new rules, which means high balance loan amounts are no longer eligible.
Are jumbo loans a viable low-down-payment option?
In many cases, yes. Jumbo mortgage rates today are competitive with conforming loan rates, so buyers are not necessarily penalized on pricing. Some jumbo programs allow 10% down for well-qualified borrowers. However, underwriting standards are typically stricter, and income and reserve requirements are higher. If your loan amount exceeds the county conforming limit, a jumbo loan conversation is worth having.
Not Sure Which Program Is Right for You?
These program changes highlight why working with an experienced loan officer matters. The mortgage market is constantly evolving, and the right program for your situation depends on your income, loan amount, credit, and goals.
If you are buying a home in King, Pierce, or Snohomish County and want to understand your options — whether that is HomeReady, FHA, VA, or a competitive jumbo loan — reach out for a personalized review. I am happy to walk through the numbers with you.
Ready to explore your home buying options?
I’ve been helping Washington State homebuyers navigate the mortgage process since 2000. No pressure, no jargon — just an honest conversation about what’s possible for you.
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