Are you thinking about buying a home in California? You might be surprised to learn that whether your mortgage is considered “conforming” or “jumbo” depends entirely on where in the state you’re buying. California has some of the highest housing costs in the country—and the loan limit that separates a conforming loan from a jumbo varies widely from county to county.
To begin, let’s first establish what exactly is considered a conforming loan
🏡 2026 Conforming Loan Limits
These limits are set annually based on the FHFA House Price Index.
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Baseline limit (most of CA): $832,750 for a 1-unit (single-family) property
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High-cost area maximum (ceiling): $1,249,125 for a 1-unit property
This ceiling represents 150% of the baseline and applies to designated high-cost counties
📍 High-Cost California Counties (2026)
The following California counties qualify as high-cost, meaning their 2026 conventional loan limits hit the ceiling of $1,249,125. These counties include:
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Alameda
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Contra Costa
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Los Angeles
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Marin
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Orange
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San Benito
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San Francisco
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San Mateo
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Santa Clara
Additionally, there are other counties in between the regular and ceiling limits: *1-unit property
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Santa Cruz: $1,249,125
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Ventura: $1,035,000
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Santa Barbara: $941,850
- San Diego: $1,104,000
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San Luis Obispo: $1,000,500
🔍 What Qualifies as a Jumbo Loan?
Any mortgage exceeding your county’s 2026 conforming limit is considered jumbo.
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In a high-cost county like Los Angeles, any loan over $1,249,125 is jumbo.
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In a baseline county like San Bernardino, anything above $832,750 becomes jumbo.
🔎 Muti-Unit Property Loan Limit Table
Please find the chart below for muti-unit 1-4 unit properties.
| Property Type | Baseline Limit | High-Cost Ceiling |
|---|---|---|
| 1‑unit property | $832,750 | $1,249,125 |
| 2‑unit property | $1,066,250 | $1,599,375 |
| 3‑unit property | $1,288,800 | $1,933,200 |
| 4‑unit property | $1,601,750 | $2,402,625 |
(Ceiling applies only in designated high-cost counties)
💼 Helpful Tips When Applying For a Jumbo Mortgage:
Jumbo loans tend to be a bit more riskier for lenders and banks, so you’ll want to make sure you meet the qualification requirements:
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✅ Credit score: Aim for 680+ or higher when financing over 90% loan to value
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✅ DTI (Debt-to-Income ratio): Keep it below 45%, ideally under 43%
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✅ Reserves: Most mortgage companies will require 3–12 months of payments in savings, depending on the final loan amount
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✅ Income documentation: Be prepared to show 2 years of tax returns, W2’s or alternative income like bank statements (for self-employed borrowers) Buyer should also provide statements documenting their funds to close.
📌 Tip: Pay down debts and avoid large purchases before applying
💸 Exploring Low Down Payment Jumbo Options
You don’t always need a 20% down payment, qualified buyers in California now have options up to 95% financing:
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✅ 5% down jumbo loans up to $2 million
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✅ 10% down jumbo loans up to $3 million
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💡 Many programs even allow no PMI despite the low down payment
📌 Note: These programs often require higher credit scores and strong reserves. Please review all the requirements on the Jumbo purchase page.
🔄 Use a Combo Loan (Piggyback Strategy)
Split your financing into two loans to avoid jumbo status or PMI:
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Example:
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80% First Mortgage (conforming)
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10% Second Mortgage (HELOC or second lien)
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10% Down Payment
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This is known as an 80/10/10 loan and offers several benefits:
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✅ Avoids PMI
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✅ Keeps the first mortgage at conforming loan limit in some cases
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✅ Flexibility with terms on the second loan
- ✅ 80/15/5 loan structure also available for those financing 95% LTV
🏠 Consider Bank Statement Loans (Self-Employed Strategy)
If you’re self-employed and write off income, a bank statement jumbo loan might help:
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Buyers can use 12–24 months of personal or business bank statements to verify income
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Bypasses tax return requirements
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Often available up to $3m+ loan amounts
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Typically 10%–15% down payment needed
📌 Great for:
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Entrepreneurs
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Gig workers
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Freelancers
Homebuyers that want to learn more about any of the purchase or refinance programs can connect with us by calling, or just submit the Quick Contact form below.
