Conforming vs. jumbo loans
A conforming loan is one that Fannie Mae and Freddie Mac can buy, which means it stays within a county’s conforming loan limit and meets their standards. Loans above that limit are jumbo loans. Each year the Federal Housing Finance Agency sets a national baseline limit and higher limits for high-cost counties, up to a ceiling of 150% of the baseline.
Why it matters
Staying conforming usually means more lender choices, lower minimum down payments and standard mortgage insurance options. Jumbo loans often need a higher credit score, a larger down payment and several months of payments in savings, and their rates can be higher or lower than conforming rates depending on the market.
Limits in the markets we cover
For 2026, the San Francisco and San Jose area counties we cover are at the $1,249,125 ceiling. The New Jersey and Long Island counties in the New York metro area are at $1,209,750, unchanged from 2025, even though their FHA limit is $1,249,125. That means a loan between those two amounts is jumbo as a conventional loan but can still fit FHA’s limit. Enter a ZIP code above to see the exact limit for the county where the home is.
An example
In a county with a $1,209,750 limit, a $1,500,000 home with 20% down needs a $1,200,000 loan, which is conforming. With 10% down, the $1,350,000 loan would be jumbo; you’d need about $290,250 down (19.4%) to stay within the limit.
Common mistakes
- Comparing the home price to the limit. The limit applies to the loan amount, not the price.
- Using the limit for the county you live in now. It’s the county where the home is that counts.
- Forgetting that 2- to 4-unit homes have higher limits.
Questions buyers ask
What is the conforming loan limit for 2026?
The national baseline for a one-unit home is $832,750, and the ceiling in high-cost counties is $1,249,125. Your county’s exact limit is shown above.
Is a jumbo loan harder to get?
Usually. Lenders often look for higher credit scores, larger down payments and more savings in reserve.
When do new limits take effect?
New limits are announced in late November and apply to loans starting January 1.