What's the Conforming Loan Limit in My California County? (2026 Guide)

The 2026 conforming loan limit in California is $832,750 for standard-cost counties and $1,249,125 for high-cost areas. Ten California counties—including Los Angeles, Orange, San Francisco, Santa Clara, and San Mateo—qualify for the maximum $1,249,125 limit, while 40+ counties remain at the $832,750 baseline. Your county's limit determines whether you need a conforming or jumbo loan.

If you're planning to buy a home in California in 2026, understanding conforming loan limits is crucial. These limits affect your loan options, interest rates, down payment requirements, and overall purchasing power. Let's break down exactly what these limits mean for you.

What Are Conforming Loan Limits?

A conforming loan limit is the maximum loan amount that Fannie Mae and Freddie Mac—the government-sponsored enterprises that purchase mortgages from lenders—will buy or guarantee. When your loan amount falls within these limits, it's considered a "conforming loan."

Why do these limits matter?

• Better loan terms: Conforming loans typically offer lower interest rates and more flexible qualification requirements
• More lender options: Most mortgage lenders prefer conforming loans because they can sell them to Fannie Mae or Freddie Mac
• Lower down payments: You can qualify for a conforming loan with as little as 3% down
• Easier approval process: Standardized underwriting guidelines make the approval process more straightforward

The Federal Housing Finance Agency (FHFA) adjusts these limits annually based on the national average home price increase. For 2026, home prices increased 3.26% from the previous year, which is reflected in the new loan limits.

Standard vs. High-Cost Area Limits Explained

California has two main conforming loan limit categories for single-family homes in 2026:

Standard Limit: $832,750

The baseline conforming loan limit applies to most counties across the United States. In California, 40+ counties fall into this standard category, meaning you can borrow up to $832,750 and still qualify for a conforming loan.

High-Cost Area Limit: $1,249,125

High-cost areas receive elevated limits based on their median home values. The FHFA uses a specific formula to determine these limits:

1. Calculate 115% of the county's median home value
2. If this amount exceeds the baseline limit, the county qualifies for a higher limit
3. The maximum high-cost area limit is capped at 150% of the baseline limit

For 2026, the high-cost ceiling in California is $1,249,125—which means you can borrow nearly $1.25 million and still get the benefits of a conforming loan in these expensive markets.

Mid-Range Counties

Several California counties fall between the standard and maximum limits, receiving customized loan limits based on their specific median home values. These "mid-range" counties have limits ranging from $897,000 to $1,104,000.

Complete California County Conforming Loan Limits (2026)

Here's the complete breakdown of conforming loan limits for California counties in 2026:

High-Cost Counties ($1,249,125)

These 10 counties qualify for the maximum conforming loan limit:

Mid-Range Counties ($897,000 - $1,104,000)

These 8 counties have customized limits based on their median home values:

Standard Counties ($832,750)

These 40+ counties have the baseline conforming loan limit:

Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Lassen, Madera, Mariposa, Mendocino, Merced, Modoc, Mono, Nevada, Placer, Plumas, Riverside, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba.

How FHFA Determines Loan Limits Annually

The Federal Housing Finance Agency follows a systematic process to set conforming loan limits each year, as required by the Housing and Economic Recovery Act (HERA).

The Annual Methodology:

1. Data Collection: FHFA monitors the national housing market throughout the year using their House Price Index (HPI)

2. Calculate Price Change: At the end of each November, FHFA publishes their third-quarter HPI report, which measures the average increase in U.S. home values over the past four quarters

3. Apply Percentage Increase: The baseline conforming loan limit increases by the same percentage as the national average home price increase. For 2026, home prices rose 3.26% from 2025, so the baseline limit increased by the same amount

4. Determine High-Cost Areas: For counties where 115% of the local median home value exceeds the baseline limit, FHFA calculates a higher limit, capped at 150% of the baseline amount

5. Protect Against Declines: In markets where home prices decline, FHFA must fully negate any cumulative price decline before allowing limits to increase again

This transparent, data-driven approach ensures that conforming loan limits reflect actual market conditions and support homeownership opportunities across different regions.

What Happens When You Exceed the Conforming Limit

If you need to borrow more than your county's conforming loan limit, you'll need a jumbo loan (also called a non-conforming loan). Jumbo loans come with different requirements and terms.

Jumbo Loan Requirements:

• Higher credit score: Typically 700 or better (vs. 620 for conforming loans)
• Larger down payment: Usually 20% minimum (vs. as low as 3% for conforming)
• Lower debt-to-income ratio: Maximum 43% DTI (vs. up to 50% for conforming)
• Manual underwriting: More documentation and scrutiny required
• Higher cash reserves: 12 months of reserves typically required (vs. 6 months for conforming)

Interest Rates on Jumbo Loans:

Historically, jumbo loans carried higher interest rates because lenders assumed more risk. However, in today's market, jumbo loan rates can actually be competitive with—or even lower than—conforming loan rates. This is because:

• Stricter qualification requirements reduce default risk
• No Fannie Mae/Freddie Mac guarantee fees
• Borrowers with strong financial profiles present lower risk

That said, jumbo loans require manual underwriting, which means an underwriter reviews your documentation individually and may request additional information throughout the process.

Benefits of Staying Within Conforming Limits

If you can keep your loan amount within your county's conforming limit, you'll enjoy several significant advantages:

Easier Qualification

• Credit score as low as 620: Conventional loans have more forgiving credit requirements
• Down payment as low as 3%: Makes homeownership accessible with less upfront capital
• Higher DTI tolerance: Up to 50% debt-to-income ratio allowed
• Standardized guidelines: Predictable underwriting process

Lower Costs

• Lower interest rates: Conforming loans typically offer better rates than jumbo loans
• Reduced cash reserves: Only 6 months of reserves needed versus 12 months for jumbo
• Less PMI cost: Private mortgage insurance is often more affordable for conforming loans

Simpler Process

• Streamlined documentation: Standard document requirements across lenders
• Faster approval: Automated underwriting systems speed up the process
• More lender options: Nearly every mortgage lender offers conforming loans

Better Refinancing Options

• Easier to refinance: More programs available for conforming loans
• Lower refinance costs: Simpler process means lower fees
• More flexibility: Better terms for rate-and-term refinancing

For most California homebuyers, staying within conforming loan limits provides the best combination of affordability, flexibility, and ease of qualification.

FHA Loan Limits Comparison

The Federal Housing Administration (FHA) also sets annual loan limits for FHA-insured mortgages. Here's how FHA limits compare to conforming loan limits in 2026:

2026 FHA Loan Limits:

• FHA Floor: $541,287 (applies to lowest-cost counties)
• FHA Ceiling: $1,249,125 (applies to highest-cost counties)

How FHA Limits Are Calculated:

The FHA is required to set loan limits between 65% and 150% of the national conforming loan limit. This creates a range:

• 65% of $832,750 = $541,287 (FHA floor)
• 150% of $832,750 = $1,249,125 (FHA ceiling)

When to Consider FHA vs. Conventional:

Choose FHA if you:

• Have a lower credit score (580-620 range)
• Have limited down payment funds (as low as 3.5%)
• Have higher debt-to-income ratio
• Need more flexible underwriting guidelines

Choose Conventional if you:

• Have credit score of 620 or higher
• Can put down at least 3%
• Want to avoid upfront mortgage insurance premiums
• Plan to refinance out of mortgage insurance once you reach 20% equity

In many California counties, both FHA and conventional conforming loans have the same maximum limit of $1,249,125, giving you flexibility to choose the program that best fits your financial situation.

How Loan Limits Affect Your Purchasing Power

Understanding your county's conforming loan limit is essential for setting realistic home shopping expectations. Let's look at how these limits affect your actual purchasing power.

Example Scenarios by County

Los Angeles County (High-Cost Area: $1,249,125)

• With 5% down: You can purchase a home up to $1,314,868
• With 10% down: You can purchase a home up to $1,387,917
• With 20% down: You can purchase a home up to $1,561,406

San Diego County (Mid-Range: $1,104,000)

• With 5% down: You can purchase a home up to $1,162,105
• With 10% down: You can purchase a home up to $1,226,667
• With 20% down: You can purchase a home up to $1,380,000

Sacramento County (Standard: $832,750)

• With 5% down: You can purchase a home up to $876,579
• With 10% down: You can purchase a home up to $925,278
• With 20% down: You can purchase a home up to $1,040,938

Down Payment Impact

Your down payment percentage significantly affects your purchasing power:

• 3% down: Maximizes purchasing power but requires PMI and limits you to certain loan programs
• 5% down: Good balance of accessibility and purchasing power
• 10% down: Reduces PMI costs and shows stronger financial position
• 20% down: Eliminates PMI and provides best terms, but requires more capital

Mortgage Insurance Considerations

If you put down less than 20%, you'll need private mortgage insurance (PMI) on conventional loans:

• PMI cost: Typically 0.3% to 1.5% of the original loan amount annually
• Cancellation: Automatically ends when you reach 78% loan-to-value ratio
• Removal option: You can request removal at 80% LTV with good payment history

For borrowers in high-cost areas, the ability to get a conforming loan up to $1,249,125 with less than 20% down is particularly valuable—you can access expensive housing markets without needing $250,000+ in down payment savings.

Historical Trend of Conforming Loan Limit Increases

Conforming loan limits have risen steadily over the past few years, reflecting national home price appreciation:

Recent Baseline Limit History:

• 2024: $766,550 (baseline for standard counties)
• 2025: $806,500 (5.2% increase)
• 2026: $832,750 (3.26% increase)

What This Trend Tells Us:

The year-over-year increases reflect continued home price appreciation across the United States. The 3.26% increase from 2025 to 2026 indicates a moderating—but still positive—housing market.

High-Cost Area Limits:

• 2024: $1,149,825 (150% of baseline)
• 2025: $1,209,750 (150% of baseline)
• 2026: $1,249,125 (150% of baseline)

The consistent application of the 150% cap ensures that high-cost areas maintain proportional access to conforming loan benefits, even as absolute home values continue to rise.

Future Outlook:

While we can't predict 2027 limits with certainty, the FHFA will continue adjusting limits based on the House Price Index. If home prices continue appreciating at 3-5% annually, we can expect modest conforming loan limit increases in future years.

Frequently Asked Questions

What is the conforming loan limit in Los Angeles County for 2026?

Los Angeles County qualifies as a high-cost area, so the conforming loan limit for a single-family home is $1,249,125 in 2026. This is the maximum amount you can borrow while still qualifying for a conforming loan with favorable terms, lower credit requirements, and competitive interest rates.

Which California counties have the highest loan limits?

Ten California counties have the maximum conforming loan limit of $1,249,125 in 2026: Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Clara, and Santa Cruz. These counties qualify for the highest limit because their median home values are significantly above the national average.

Can I get a conforming loan above $832,750?

Yes, if you're buying in a high-cost area. While the baseline conforming loan limit is $832,750, many California counties qualify for higher limits based on their median home values. Ten counties have limits of $1,249,125, and eight counties have limits ranging from $897,000 to $1,104,000. Check your specific county to see what limit applies.

What's the difference between conforming and jumbo loans?

Conforming loans stay within FHFA loan limits and can be purchased by Fannie Mae or Freddie Mac, offering easier qualification (620 credit score, 3% down, 50% DTI) and typically better rates. Jumbo loans exceed these limits and require stricter standards (700+ credit score, 20% down, 43% DTI, manual underwriting, and more cash reserves). However, jumbo loan rates can be competitive for well-qualified borrowers.

How do I know if my county is high-cost?

Check the county limit tables in this article. If your California county has a conforming loan limit of $1,249,125, it's classified as high-cost. If it's between $897,000 and $1,104,000, it's a mid-range county. If it's $832,750, it's a standard-cost county. The FHFA determines high-cost status by comparing 115% of the county's median home value to the national baseline limit.

Will conforming loan limits increase in 2027?

While we can't predict exact amounts, conforming loan limits will likely continue increasing if home prices continue to appreciate. The FHFA adjusts limits annually each November based on the House Price Index. If home prices rise 3-5% in 2026, you can expect corresponding increases to the 2027 loan limits. The FHFA typically announces new limits in November for the following year.

Ready to Explore Your Home Financing Options?

Now that you understand California's 2026 conforming loan limits and how they affect your purchasing power, it's time to take the next step. Whether you're buying in a high-cost area like Los Angeles or San Francisco, or in a standard county like Sacramento or Riverside, knowing your county's loan limit helps you shop for homes with confidence.

Key Takeaways:

• The 2026 conforming loan limit ranges from $832,750 to $1,249,125 depending on your California county
• High-cost counties (10 total) offer the maximum $1,249,125 limit for single-family homes
• Staying within conforming limits provides easier qualification, lower down payments, and better terms
• If you exceed the limit, you'll need a jumbo loan with stricter requirements

Want to see what loan amount you qualify for in your specific county? Get pre-approved today and discover your exact purchasing power. Our California mortgage specialists understand the unique requirements of each county and can help you navigate conforming loans, high-balance loans, and jumbo financing options.

Whether you're a first-time homebuyer stretching to afford a Bay Area home or an experienced buyer upgrading in Southern California, understanding conforming loan limits is your first step toward making an informed financing decision.

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