What is the conforming loan limit in California?

In 2024, most California counties have a high-cost conforming limit of $1,149,825. Some counties may have lower limits. Loans above your county's limit are considered jumbo loans.

Are jumbo loan rates higher than conforming rates?

Historically yes, but the gap has narrowed significantly. In some market conditions, jumbo rates can actually be lower than conforming rates. Current spreads are typically 0.1% to 0.3% higher.

Can I get a jumbo loan with 10% down?

Some lenders offer 10% down jumbo programs, but 20% is more standard. Lower down payments typically require higher credit scores (740+) and may come with higher rates or PMI requirements.

What are the reserve requirements for jumbo loans?

Most jumbo lenders require 6-12 months of mortgage payments in liquid assets (savings, investments, retirement accounts) after closing. Some require reserves for all properties you own, not just the jumbo-financed one.

Jumbo Loans: Financing for High-Value Homes

Jumbo mortgages exceed conforming loan limits and are designed for luxury homes and high-cost markets. Expect stricter requirements but competitive rates for well-qualified borrowers.

What Is a Jumbo Loan?

A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In 2024, the standard conforming limit is $766,550 for most of the U.S. In high-cost areas (including many California counties), the limit is up to $1,149,825. Loans above these thresholds are "jumbo" — they cannot be purchased by Fannie Mae or Freddie Mac, which means lenders take on more risk and require stronger borrower profiles.

Jumbo Loan Requirements

Higher Credit Scores

Most lenders require 700–720 minimum, with best rates for 740+. Jumbo lenders scrutinize credit history more closely than conforming loan programs.

Larger Down Payments

Typically 10%–20% down required. Some lenders offer 10% down jumbo programs, but 20% is standard. Larger down payments mean lower rates.

Lower DTI Required

Most jumbo lenders cap DTI at 43%, with some preferring 36% or lower. Strong reserves (6–12 months of payments) are often required.

Cash Reserves

Expect to show 6–12 months of mortgage payments in liquid assets after closing. This proves you can handle the larger payment even during financial disruptions.

Two Appraisals

Many jumbo lenders require two independent appraisals to verify the property value, since the stakes are higher on larger loans.

Jumbo vs. Conforming Comparison

Feature	Conforming	Jumbo
Loan Amount	Up to $766,550 (or $1,149,825 in high-cost)	Above conforming limits
Min. Credit Score	620	700–720
Down Payment	3%–5%	10%–20%
Interest Rates	Market standard	Slightly higher (but gap has narrowed)
Cash Reserves	2 months typical	6–12 months

Check today's jumbo mortgage rates or use our mortgage calculator to estimate payments on a jumbo loan. For homes below the conforming limit, see our conventional loans page.