Say two buyers make the same 900,000 dollar purchase with the same 5 percent down, so both are borrowing 855,000 dollars. One is buying in New Milford. One is buying in Kent. For 2026 the New Milford loan is conforming and the Kent loan is not.
That is not a lender's preference. It is a federal number, and it changes at a line that runs right through this market.
The number, and where it comes from
Every year the Federal Housing Finance Agency publishes the conforming loan limits for mortgages Fannie Mae and Freddie Mac will acquire. For 2026 the file is titled "Fannie Mae and Freddie Mac Conforming Loan Limits for Mortgages Acquired in Calendar Year 2026" and it notes that the limits were determined under the provisions of the Housing and Economic Recovery Act of 2008.
Connecticut no longer appears in that file by county. It appears by planning region, and the state's nine regions do not all get the same number.
- Western Connecticut Planning Region: 977,500 dollars for a one unit property. Two unit 1,251,400. Three unit 1,512,650. Four unit 1,879,850.
- Northwest Hills Planning Region: 832,750 dollars for a one unit property. Two unit 1,066,250. Three unit 1,288,800. Four unit 1,601,750.
- Naugatuck Valley sits on its own number, 851,000.
- Greater Bridgeport matches Western at 977,500, because the two share the same statistical area.
- Capitol, Lower Connecticut River Valley, Northeastern, South Central and Southeastern all carry 832,750.
The gap between the two regions that matter here is 144,750 dollars.
Which region is your town in
This is the part that surprises people, and it is settled by a single table the state publishes: the Office of Policy and Management's municipality to planning region list, which assigns all 169 Connecticut towns.
All five Candlewood Lake towns are Western. Brookfield, Danbury, New Fairfield, New Milford and Sherman. So are Bridgewater and Newtown. Every one of them carries the 977,500 dollar limit.
The towns just north and east of them are not. Kent, Warren, Washington, Litchfield and Morris are Northwest Hills, at 832,750.
Read that against a map for a moment. New Milford and Kent share a border. Sherman and Kent share a border. The conforming ceiling moves by nearly 145,000 dollars when you cross that town line, and nothing about the houses on either side explains it.
Why this shows up on a Candlewood area search
Because of where the number falls relative to your loan, not your price. That same 900,000 dollar purchase is conforming in both regions at 10 percent down, an 810,000 dollar loan, and conforming in only one of them at 5 percent down. Which side of the line you land on is set by your down payment, so it is worth running your actual number before you assume.
The practical consequence shows up before you tour anything. A buyer pre approved against one region's ceiling is not pre approved against the other's, and a search that spans New Milford and Kent spans both.
What this does not mean
Three cautions, because this is a number that invites overreach.
It is not a price cap. Nothing stops anyone buying above the limit. The limit only marks where a loan stops being eligible for Fannie Mae and Freddie Mac. Above that line a lender sets its own terms, still inside the federal lending rules that apply to every mortgage. What those terms look like is a conversation with your lender.
It is not the FHA limit. The Federal Housing Administration sets its own mortgage limits under a different formula, published by HUD. Do not assume the two numbers match in your region, even in a year when they happen to. If FHA financing is your route, ask your lender for the HUD figure for your specific town.
It is not advice about your loan. I am a real estate salesperson, not a mortgage lender or broker. The figures here are the published federal limits; what you can actually borrow depends on the lender, the property and you.
Common questions
What is the 2026 conforming loan limit for the Candlewood Lake towns? 977,500 dollars for a one unit property. Brookfield, Danbury, New Fairfield, New Milford and Sherman are all in the Western Connecticut Planning Region.
Why is Kent different from New Milford? Kent is in the Northwest Hills Planning Region, where the 2026 one unit limit is 832,750 dollars. The two towns share a border and a different federal ceiling.
How much is the difference? 144,750 dollars between the Western and Northwest Hills one unit limits for 2026.
Does Connecticut still use counties for this? The FHFA file lists Connecticut by planning region rather than by county. Your town's region is set by the state's own municipality to planning region table.
Does a higher limit mean I can borrow more? No. It marks where a loan stops being conforming. What you qualify for is a question for your lender.
If you are weighing a purchase that straddles this line, or comparing a Western Connecticut Planning Region town against a Northwest Hills one, reach me through ConnorCTHomes.com.
Connor Kostyra, Licensed Real Estate Salesperson, CT Lic. RES.0836348.
Connor CT Homes is a marketing brand. Real estate services are provided through RE/MAX Rise, 1297 Main Street, Watertown, CT 06795.
This article is general information and is not mortgage, lending, legal or tax advice. I am not a mortgage lender or broker. Loan limit figures are taken from the Federal Housing Finance Agency's published 2026 HERA based full county loan limit file, and town to planning region assignments from the Connecticut Office of Policy and Management's published municipality to planning region table, both read on September 5, 2026. These limits are reset annually and the FHA limits published by HUD are a separate set of numbers that were not used here. Confirm current figures and your own eligibility with a licensed lender.
