A conventional (conforming) loan falls at or below the Fannie Mae/Freddie Mac limit for your county — up to about $1,249,125 in high-cost California counties for 2026. A jumbo loan exceeds that limit. Jumbos aren’t backed by the agencies, so they carry stricter requirements — bigger down payments, higher credit scores, and more reserves — but rates are often competitive with (sometimes below) conforming on strong files.
Where the line falls in California
The 2026 conforming limit is $806,500 in most of the country, but California’s high-cost counties (Los Angeles, Orange, the Bay Area) get the ceiling of about $1,249,125 for a one-unit home. Below your county limit = conventional/conforming; above it = jumbo. Many California buyers land just over the line, which is exactly where shopping pays.
| Feature | Conventional (Conforming) | Jumbo |
|---|---|---|
| Loan size | Up to county limit (~$1.25M high-cost) | Above the county limit |
| Down payment | As low as 3–5% | Often 10–20%+ |
| Credit score | 620+ | 700–740+ typical |
| Reserves | Modest | Several months+ |
Which is better?
You don’t really "choose" — your loan amount and county limit decide it. If you’re near the line, putting a little more down to stay conforming can simplify approval; but a strong borrower shouldn’t fear a jumbo — pricing is competitive and a broker can shop jumbo guidelines that vary widely by lender.
Bottom line: Near the jumbo line in California? A broker can price it both ways — conforming with a bit more down vs. jumbo — and show you which is cheaper. See our jumbo program and conventional program.
Frequently asked questions
What is the difference between a jumbo and conventional loan?
A conventional (conforming) loan is at or below the Fannie/Freddie county limit (up to ~$1.25M in high-cost California); a jumbo exceeds it. Jumbos have stricter down-payment, credit, and reserve requirements because they aren’t agency-backed.
What is the jumbo loan limit in California for 2026?
Anything above your county’s conforming limit is jumbo. High-cost California counties top out around $1,249,125 for a one-unit home in 2026; lower-cost counties are lower.
Are jumbo rates higher than conventional?
Not necessarily. On strong files, jumbo rates are often competitive with — and occasionally below — conforming rates, because lenders compete hard for well-qualified high-balance borrowers.
Is it better to stay under the jumbo limit?
If you’re just over the line, a slightly larger down payment to stay conforming can ease approval and lower reserve requirements. But qualified borrowers often do fine with a jumbo — compare both.
Save Financial, Inc. — NMLS #377740, DRE #01875766. Equal Housing Opportunity. Figures are illustrative for 2026 and not an offer of credit or a guarantee of rates or approval.