Conventional and Jumbo Loans on Long Island and in New York City

I help buyers get conventional and jumbo loans on Long Island and across downstate New York, comparing guidelines from the lenders I work with.

A conventional loan is a mortgage that is not part of a government program such as FHA or VA. If the loan amount is within the yearly limit set by the Federal Housing Finance Agency (FHFA), it is a conforming loan that Fannie Mae or Freddie Mac can acquire; for 2026, that limit is $1,209,750 for a one-unit home in Nassau, Suffolk and the five boroughs of New York City. Above the county limit it is a jumbo loan.

How conventional and conforming mortgages work

The Consumer Financial Protection Bureau (CFPB) puts it plainly: “conventional” just means the loan is not part of a specific government program. Conventional loans fall into two main groups:

• Conforming loans. At or under FHFA’s limit for the county and property type, following Fannie Mae or Freddie Mac rules.
• Jumbo, or non-conforming, loans. Above the county limit. CFPB notes these are less standardized, with eligibility, pricing and features that vary widely by lender.

Compare it with FHA, VA and DSCR options in the overview of Long Island mortgage loan programs.

Who conventional and jumbo loans tend to fit

Conventional loans tend to fit Long Island buyers with established credit and savings. I’d price one when:

• You want mortgage insurance that can come off. Borrower-paid private mortgage insurance has federal cancellation rights, explained below.
• Your loan is above the conforming limit. A higher-priced Long Island home may call for a jumbo loan.
• You are buying a second home or a rental. Fannie Mae buys loans on principal residences, second homes and investment properties, though lender rules still apply.
• You have an FHA loan now. A conventional refinance may be worth comparing with keeping your FHA loan; see refinancing a mortgage on Long Island.

2026 conforming loan limits on Long Island and in NYC

For 2026, the conforming limit for a one-unit home in Nassau and Suffolk is $1,209,750, per FHFA, against a national baseline of $832,750. FHFA updates the limits at the end of each November, effective January 1, and high-cost areas can go up to a ceiling of $1,249,125. Nassau, Suffolk and New York’s other NYC-metro counties (the five boroughs, Westchester, Rockland and Putnam) share one set of limits, below that ceiling:

The limit caps the loan amount, not the price, and the higher two- to four-family limits can keep a multi-family purchase conforming at a loan size that would be jumbo on a one-family house. Renting out units? See financing 1–4 family and other investment property. Buying elsewhere in New York? Outside the 10 NYC-metro counties, the 2026 one-unit conforming limit is the $832,750 baseline; my New York conforming loan limits by county page covers all 62.

The high-balance band

One-unit conforming loans between the $832,750 baseline and $1,209,750 are possible only in high-cost counties. CFPB calls them “conforming jumbo” loans, and Fannie Mae’s Selling Guide calls them high-balance mortgage loans; they still follow Fannie Mae or Freddie Mac rules.

When a Nassau or Suffolk County loan becomes jumbo

In Nassau and Suffolk, a one-unit conventional loan becomes jumbo above $1,209,750 in 2026. A loan on a median-priced home fits under that limit in either county: per OneKey MLS, August 2026 single-family medians were $911,000 in Nassau and $760,000 in Suffolk. The Nassau median is above the $832,750 baseline, though, so depending on the price and the cash you bring, a Nassau loan can land in the high-balance band. My Long Island housing market page tracks both medians month by month.

What jumbo lenders tend to look at

CFPB says jumbo rules vary by lender but usually call for good credit and a high down payment, and that a jumbo mortgage may cost more to obtain than a conforming one. Before you apply, ask each lender about:

• Reserves. Whether it expects savings left over after closing, and which accounts count.
• Documentation. What it needs to document your income, assets and any large deposits. Self-employed? My self-employed guide covers the conventional and FHA rules.
• The appraisal. What its appraisal requirements are for your property.

Budget for closing taxes, too: New York charges a mortgage recording tax when your mortgage is recorded, and some buyers owe other state or local taxes at closing. Your Loan Estimate and closing attorney show the exact amounts.

Private mortgage insurance and how it comes off

Depending on how much you borrow compared with the home’s value, a conventional loan may require private mortgage insurance (PMI). Under the Homeowners Protection Act, CFPB explains these rights for borrower-paid PMI on mortgages for single-family principal residences that closed on or after July 29, 1999:

• Cancellation on request. You can ask your servicer to cancel PMI “on the date the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home,” or earlier if extra payments got you there. You need a written request, a good, current payment history and no junior liens, and you may need an appraisal showing the value hasn’t fallen below the original value.
• Automatic termination. The servicer must automatically terminate PMI “on the date when your principal balance is scheduled to reach 78 percent of the original value of your home,” if you are current.
• Midpoint termination. PMI must also end the month after you reach the midpoint of your loan’s amortization schedule, if you are current.

“Original value” generally means the lower of the contract sales price or the appraised value when you bought, or the appraised value at a refinance. FHA and VA loans follow different rules, and so does mortgage insurance your lender pays for. If your score is on the low side, see whether you can avoid PMI with lower credit.

A recast lowers your payment, but it doesn’t cancel PMI on its own; you still have to ask.

Long Island appreciation and your PMI

Nassau’s August 2026 median rose 4.7% and Suffolk’s 7.0% from a year earlier, per OneKey MLS, but the federal timeline runs on original value, so appreciation alone doesn’t move it. Fannie Mae and Freddie Mac may have their own cancellation guidelines, which cannot be less favorable to you, so ask your servicer what your loan allows before you order an appraisal or refinance.

Conventional vs. FHA, in plain words

• Credit. Per HUD, FHA’s minimum credit score requirements are lower than those of most conventional mortgages.
• Mortgage insurance. FHA charges upfront and annual premiums set by HUD; borrower-paid PMI follows the cancellation rules above.
• Loan size. For one unit here, FHA’s 2026 limit is $1,249,125 versus $1,209,750 conforming, so a loan between the two would be jumbo as a conventional loan but could fit within FHA’s limit.

CFPB notes that conventional loans typically cost less than FHA loans but can be more difficult to get, so compare official Loan Estimates for both. My guide to FHA loans on Long Island covers FHA’s side.

Second homes and the East End

Buying out east, or anywhere you won’t live full time? Decide early whether the home is a second home or a rental; Fannie Mae treats them as separate occupancy types with their own eligibility requirements, and your application should match how you will actually use it. If you will rent it, check town rules first. The Town of Southampton requires a rental permit for a home rented for any period of time, and its Town Code currently sets a 14-day minimum stay. The Town of East Hampton requires owners who rent by the week, month, season or year to register and show a Rental Registry Number in their rental ads. My Suffolk County mortgage broker guide covers the county’s towns, and my guide to Nassau County does the same for its towns, cities and villages.

Conventional and jumbo loans in New York City and Westchester

Conventional mortgages in Manhattan, Queens, Brooklyn, Staten Island and the Bronx

FHFA lists the boroughs by county name (New York for Manhattan, Kings for Brooklyn, Queens, Bronx and Richmond for Staten Island), and all five share Long Island’s limits; the homes don’t. On Staten Island and in Queens and Brooklyn, from Astoria to Bay Ridge, two- to four-family houses are common, and the higher multi-unit limits above apply. In Manhattan most homes are co-ops or condos, jumbo loans are common, and the lender reviews the building as well as you. Co-op boards add their own rules on top; see my co-op loan guide.

Conventional and jumbo loans in Westchester, Rockland and Putnam

Westchester, Rockland and Putnam use the same limits. In Westchester’s pricier towns a loan can land in the high-balance band or go jumbo, and property taxes there run high; lenders count the full tax bill in your debt-to-income ratio, so I work from the actual bill on the house.

Step by step: a conventional or jumbo purchase

1. Start with a conversation. We work out whether your loan would likely be conforming, high-balance or jumbo.
2. Get pre-approved. It takes only a soft credit check, so it won’t affect your credit score. CFPB notes that a preapproval letter is not a firm loan offer, can expire and doesn’t commit you to that lender. Gather documents with my mortgage document checklist, and ask a jumbo lender whether it needs anything more.
3. Compare Loan Estimates. CFPB suggests waiting to choose a lender until you have official Loan Estimates. Test the monthly cost with the Long Island mortgage calculator.
4. Close with your own attorney. Review the final figures with your attorney before you sign. For the full timeline, from contract to title, see how a Long Island home purchase mortgage works.

Conforming or jumbo, a third-party lender underwrites and funds the loan; I arrange it through Scott Capital Group and compare how different lenders’ jumbo guidelines treat your file. We can handle all of it.

Frequently asked questions

Sources

1. FHFA, FHFA Announces Conforming Loan Limit Values for 2026.
2. FHFA, 2026 conforming loan limits, full county list (spreadsheet).
3. FHFA, Conforming Loan Limit Values FAQs (updated November 2025).
4. CFPB, Conventional loans.
5. CFPB, What is a jumbo loan?
6. Fannie Mae Selling Guide, B5-1-01, High-Balance Mortgage Loan Eligibility and Underwriting.
7. Fannie Mae Selling Guide, B2-1.1-01, Occupancy Types.
8. CFPB, When can I remove private mortgage insurance (PMI) from my loan?
9. U.S. Code, 12 U.S.C. §4901, Homeowners Protection Act of 1998: definitions.
10. HUD, FHA Mortgage Limits lookup (FHA Forward, CY2026, Nassau and Suffolk, NY).
11. HUD, FHA Myths v Facts.
12. HUD, Mortgagee Letter 2023-05, Reduction of FHA Annual MIP Rates.
13. OneKey MLS, Footprint Round-Up, September 22, 2026 (August 2026 data).
14. Town of Southampton, FAQ: Are Rental Permits required?
15. Town of East Hampton, Rental Registry FAQs brochure.
16. CFPB, What’s the difference between a prequalification letter and a preapproval letter?
17. CFPB, Get a preapproval letter.