From the RatesQ team · Sample question

When does a California loan cross into jumbo territory?

This educational scenario and its sample explanations are not posts from real users.

Looking to buy in the Bay Area. Everything here is $900k+. I keep hearing about conforming vs jumbo. What's the current conforming loan limit in California and how does going jumbo affect my options?

Quick Summary

  1. Conforming loan limits depend on the county and year.
  2. A loan above the applicable limit may require a jumbo product.
  3. Compare the actual underwriting terms and written pricing rather than the product label alone.

Sample explanations

From the RatesQ team

The baseline conforming limit for 2025 is $806,500. High-cost counties (like most of the Bay Area) have higher limits — some up to $1,209,750 for single-family homes. Above that, you're in jumbo territory. If you're buying at $900k, check the exact limit for your county — you might still be conforming in some Bay Area counties.

From the RatesQ team

Good point on county-specific limits. For jumbo financing: expect to show 12–24 months of reserves (post-close cash/assets), usually 720+ credit score, and most jumbo lenders want 20% down, though some go to 10% for strong borrowers. The underwriting is more manual and income documentation is typically more thorough. On the rate side, jumbo rates aren't always higher than conforming — it fluctuates with the market. Right now they're competitive in many cases. Get a few quotes from both conforming and jumbo lenders to compare your actual options.