JUMBO LOANS IN CALIFORNIA — 2026 LIMITS, RATES & REQUIREMENTS

A jumbo loan in California is a mortgage that exceeds the 2026 conforming loan limit of $832,750 in standard counties or $1,249,125 in high-cost areas like the Bay Area and Los Angeles. Unlike conforming loans backed by Fannie Mae and Freddie Mac, jumbo loans are held by lenders directly — which means no PMI, no maximum loan amount, and rates that now rival conforming. Here’s everything you need to know about limits, rates, requirements, and how to get the best deal in 2026.

What Is a Jumbo Loan in California?

A jumbo loan is a mortgage that exceeds the conforming loan limits set annually by the Federal Housing Finance Agency (FHFA). In California for 2026, any loan above $832,750 in standard counties, or above $1,249,125 in high-cost areas like the Bay Area and LA, is classified as a jumbo loan.

Why does this matter? Loans above these limits can’t be purchased by Fannie Mae or Freddie Mac, the two government-sponsored enterprises (GSEs) that back most U.S. mortgages. Lenders keep jumbo loans on their own books (called “portfolio lending”), which means different rules, requirements, and pricing.

In California, jumbo loans aren’t just for mansions. They’re how most people buy decent homes in desirable areas. California accounts for roughly 40% of all U.S. jumbo loan volume because of the state’s high property values, particularly in coastal markets.

2026 California Conforming Loan Limits by Property Type

The FHFA sets conforming loan limits based on property unit count. Any loan above these amounts requires jumbo financing:

2026 Jumbo Loan Thresholds by California Region

These limits are updated annually by the FHFA. Verify current limits for your specific county before applying.

Complete 2026 Conforming Loan Limits: All 58 California Counties

Any loan above your county’s conforming limit requires jumbo financing.

Jumbo Loan Requirements in California 2026

Jumbo loan requirements in California vary by lender because these loans aren’t backed by Fannie Mae or Freddie Mac — each lender sets their own criteria. That said, here are the typical ranges we see across our network of 15+ jumbo lenders:

Don’t meet typical guidelines? That’s the whole point of working with a broker — we know which lenders flex on what.

Who Should Get a Jumbo Loan in California?

A jumbo loan is right for you if you’re buying a California home priced above the conforming loan limit in your county. Jumbo loans are the most common financing option in California’s high-cost coastal markets — they’re not just for the ultra-wealthy.

High Earners

Doctors, tech executives, attorneys, and business owners with substantial income looking to buy in California’s premium markets. Physicians and dentists may also qualify for specialized physician mortgage programs with 100% financing and no PMI.

Jumbo loans have no maximum loan amount, so there’s no need for multiple mortgages or complicated structures.

Real Estate Investors

Building a portfolio of luxury rentals or vacation properties? Jumbo investment loans provide funding for prime California real estate.

Luxury investment properties may also qualify for DSCR loans, which approve based on rental income rather than personal income.

Buyers in High-Cost Markets

Bay Area, LA, Orange County, San Diego. Most decent homes exceed conforming limits.

If you’re buying in these markets, jumbo is likely your only option.

Self-Employed Borrowers

Own a business with strong revenue but complex tax returns? Jumbo loans actually offer more flexibility for self-employed borrowers than conforming loans.

Portfolio jumbo lenders offer bank statement programs that qualify you based on 12–24 months of deposits instead of tax returns, asset-based options for high-net-worth borrowers, and CPA letter programs that use a CPA-prepared profit and loss statement. Since jumbo lenders set their own criteria, many specialize in self-employed borrowers and understand that tax write-offs don’t reflect actual earning power.

Jumbo Loan Benefits: No PMI, No Loan Limit

The biggest advantages of jumbo loans are no PMI (private mortgage insurance) regardless of down payment, no maximum loan amount, and rates comparable to conforming loans at just 0.125–0.25% above.

• No loan limits: There’s no cap on jumbo loan amounts. Want that $3M Palo Alto home or a $10M estate? No problem.
• No PMI ever: Zero mortgage insurance regardless of down payment. On a $1.5M loan with 15% down, that saves $450+ monthly compared to conforming with PMI.
• Portfolio lender flexibility: Lenders who keep loans in-house offer more flexibility on income docs and unique properties.
• Competitive rates: Jumbo rates now run just 0.125-0.25% above conforming, not the 0.75-1% spreads from years ago.

Do Jumbo Loans Require PMI?

No. Jumbo loans never require private mortgage insurance (PMI), regardless of your down payment amount. This is one of the biggest financial advantages over conforming loans, where PMI is mandatory with less than 20% down. On a $1.5M jumbo loan with 15% down, skipping PMI saves roughly $450+ per month compared to a conforming loan with PMI — that’s over $5,000 per year back in your pocket.

Jumbo vs Conforming Loans: Key Differences

Jumbo Loan Rates in California 2026

Jumbo loan rates in California currently average 6.25–6.75% for 30-year fixed mortgages, just 0.125–0.25% above conforming rates. Well-qualified borrowers with 780+ credit and 20%+ down often secure rates matching or beating conforming.

How Do Rates Compare to Conforming?

Historically, jumbo rates ran up to 1% higher than conforming loans.

That’s changed. Today, jumbo rates sit comparable to conforming, sometimes even lower for well-qualified borrowers.

Why? Jumbo borrowers have stronger profiles. Higher credit. Larger down payments. Lower default risk. Lenders price that favorably now.

Fixed-Rate vs Adjustable-Rate Jumbo Loans

Jumbo borrowers have access to both fixed-rate and adjustable-rate mortgage (ARM) options. ARM jumbo loans deserve serious consideration because they can offer 0.5-0.75% lower initial rates than fixed-rate jumbos, and on large loan amounts, that savings is significant.

On a $1.5M jumbo loan, a 7/1 ARM saving 0.5% means roughly $625/month less during the fixed period, or $52,500 over 7 years. If you plan to sell, refinance, or pay down the balance significantly within that window, an ARM can be a smart strategy.

How Does Credit Score Affect Your Rate?

Credit score drives pricing more than loan amount:

• 780+ credit: Best rates available. Baseline pricing. Prime jumbo territory.
• 740-779 credit: Slightly above baseline. Still competitive. Most lenders compete for your business.
• 720-739 credit: Good rates. Solid approvals. Middle of the market.
• 700-719 credit: Higher rates. Fewer lender options but still available.
• 680-699 credit: Limited lenders. Need compensating factors like larger down payment and substantial reserves.
• Below 680: Very few options. Portfolio lenders only — but they exist. Talk to us.

How Does Down Payment Affect Your Rate?

More skin in the game = better pricing.

• 20%+ down: Best rates. Most lender options. Standard jumbo territory.
• 15-19% down: Add roughly 0.125-0.25% rate premium. Fewer lenders but still competitive.
• 10-14% down: Higher rates. Limited lender pool. Strong credit helps.

Jumbo Loan Closing Costs in California

Jumbo loan closing costs in California typically run 1–2% of the loan amount, or $15,000–$30,000 on a $1.5M loan. Here’s the breakdown.

• Origination fees: Typically 0.5-1% of loan amount. On a $1.5M loan, that’s $7,500-$15,000.
• Points: Buying down rates costs roughly 1% per 0.25% rate reduction. Calculate your break-even based on how long you’ll keep the loan.
• Appraisal costs: Luxury properties need experienced appraisers. Expect $800-$1,500 for standard homes, more for unique properties.
• No PMI benefit: Jumbo loans skip mortgage insurance regardless of down payment. That’s potentially $450+ monthly savings on large loans.

Use our mortgage calculator to estimate your jumbo loan payment based on loan amount, rate, and term.

How to Get a Jumbo Loan in California

Getting a jumbo loan in California takes 30–45 days from application to closing, the same timeline as conforming loans. The process involves 6 steps: assessing your finances, gathering documentation, getting pre-qualified, comparing lenders, locking your rate, and closing.

Step 1: Check Your Financial Profile

Know your credit score, calculate your debt-to-income ratio, and assess your available down payment. Requirements vary by lender, but generally stronger credit and larger down payments unlock better rates. If your score needs work, address it before applying.

Step 2: Gather Documentation Early

Jumbo loans require more paperwork than conforming. Prepare: 2 years of tax returns (all pages, all schedules), recent pay stubs (30 days), bank statements (2-3 months, all pages), investment account statements, and business docs if self-employed (P&L, CPA letter).

Step 3: Get Pre-Qualified

We review your profile and match you with lenders suited to your situation. This identifies your price range and loan options before you start shopping for homes.

Step 4: Compare Multiple Lenders

We submit your scenario to multiple jumbo specialists, comparing rates, terms, and fees. Jumbo pricing varies significantly between lenders. Shopping saves thousands.

Step 5: Lock Your Rate

Once you find a property, secure your rate. Jumbo rate locks can extend longer than conforming, giving you flexibility during escrow.

Step 6: Close on Your Home

Complete underwriting, appraisal, and final verification. Typical timeline: 30-45 days, same as conforming when documentation is ready.

Jumbo Loan Types Available in California

There are four main jumbo loan types in California: traditional jumbo (best rates, full documentation), portfolio jumbo (flexible underwriting), asset-based (qualify on wealth, not income), and bank statement (self-employed friendly).

• Traditional jumbo: Full docs, strong credit, best rates. Fixed or adjustable. Straightforward if your income is clean.
• Portfolio jumbo: Flexible underwriting. Unique properties OK. Lender keeps the loan. More wiggle room on guidelines.
• Asset-based: Qualify on assets, not income. Ideal for retirees with investment portfolios. See asset depletion loans.
• Bank statement: Self-employed? Use 12-24 months of deposits instead of tax returns. Slightly higher rates but much easier qualification. See bank statement loans.

Can You Get a Jumbo Loan with Less Than 20% Down?

Yes — while 20% down gets the best jumbo rates, several options exist for 10–15% down, and some programs allow as little as 5% down on jumbo loans in California.

Low Down Payment Jumbo Options

• 10% down jumbo: Available from many portfolio lenders with strong credit and reserves. Expect a small rate premium of 0.125-0.25%.
• 5% down jumbo: Select lenders offer 5% down jumbo programs for loan amounts up to $1.5M-$2M. Requires strong credit, solid reserves, and lower DTI — lender criteria vary.
• Piggyback loans (80/10/10): Combine an 80% first mortgage (conforming) with a 10% second mortgage (HELOC or home equity loan) and 10% down payment. This avoids jumbo pricing entirely while financing 90% of the purchase price. Best for loan amounts near the conforming limit.
• Piggyback (80/15/5): Same structure but with just 5% down. The first mortgage stays conforming, and the second mortgage covers 15%.

Which Low Down Payment Strategy Is Best?

Tax Implications of Jumbo Loans

Jumbo loan borrowers can only deduct mortgage interest on the first $750,000 of mortgage debt ($375,000 if married filing separately) under the Tax Cuts and Jobs Act (TCJA). This means the larger your jumbo loan, the smaller the percentage of interest you can deduct.

This means on a $1.5M jumbo loan, you can only deduct interest on half the balance. On a $2M loan, only 37.5% of your interest qualifies for the deduction.

How the $750K Cap Affects Jumbo Borrowers

Key exceptions: Mortgages originated before December 15, 2017 are grandfathered under the old $1M limit. Home equity debt used to “buy, build, or substantially improve” the home also qualifies. The TCJA provisions are currently set to expire after 2025, so consult your tax advisor for the latest rules.

Common Jumbo Loan Myths

The most common jumbo loan myths — that they require 20% down, carry much higher rates, and take months to close — are all outdated or incorrect as of 2026. Here’s the reality.

• “Jumbo loans are harder to get” - More docs required, yes. But approval rates are high if you meet the requirements. The process isn’t harder, just more thorough.
• “Jumbo rates are much higher” - Not anymore. Rates are now comparable to conforming, sometimes lower for strong borrowers.
• “You need 20% down” - Many lenders accept 10-15% down. Some portfolio lenders go even lower with compensating factors.
• “It takes forever to close” - 30-45 days, same as conforming. Preparation matters more than loan type.

Jumbo Loan Limits by California County

California has 17 high-cost counties with conforming limits ranging from $897,000 to $1,249,125 — in these counties, the jumbo threshold is higher, meaning you can borrow more before needing jumbo financing. In all other California counties, jumbo starts above $832,750.

High-Cost Counties (Above $832,750)

At the $1,249,125 ceiling: Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Clara, and Santa Cruz Counties.

With other high-cost limits: San Diego ($1,104,000), Ventura ($1,035,000), Napa ($1,017,750), San Luis Obispo ($1,000,500), Monterey ($994,750), Santa Barbara ($941,850), and Sonoma ($897,000).

Standard Counties ($832,750 limit)

All other California counties trigger jumbo above $832,750.

Regional Market Notes

Each California region has distinct jumbo loan characteristics based on local home values and buyer profiles.

• Bay Area: Median prices in Palo Alto, Los Altos, and Atherton start around $3M. Even entry-level homes in San Francisco typically require jumbo financing.
• Los Angeles: Wide range from $1.5M starter jumbos to $10M+ in Beverly Hills, Malibu, and Pacific Palisades.
• Orange County: Newport Beach and Laguna Beach average $2.5M+. Inland areas offer jumbo entry points around $1.3M.
• San Diego: La Jolla, Del Mar, and Rancho Santa Fe range from $2M to $5M+. Coastal North County starts around $1.5M.
• Central Coast: Santa Barbara and San Luis Obispo see jumbo activity starting just above their local limits, typically $1M-$2M range.

Why Work with a Jumbo Loan Broker vs a Bank?

Working with a jumbo loan broker gives you access to 15+ jumbo lenders competing for your business, instead of one bank’s single in-house product. As a broker, we shop your scenario across our network to find the lowest rate and best terms. Banks only offer their own products.

• 40+ years of experience: We know which lenders handle self-employed best. Which ones love unique properties. Which ones actually close on time.
• California market expertise: Luxury appraisals here are tricky. Lenders need California experience. We understand these markets.
• Relationship pricing: Longstanding lender relationships mean better rates. We leverage 40 years of connections.
• Portfolio access: Exclusive lenders most brokers never hear about. Programs for situations banks decline.

Should You Get a Jumbo Loan?

If you’re buying a home in California priced above the conforming loan limit in your county, a jumbo loan is likely your best option. In coastal California, $2M homes are normal, and jumbo financing is how most buyers in these markets purchase property.

Jumbo mortgages need specialists who understand:

• California market cycles
• Luxury appraisal challenges
• High-net-worth borrower needs
• Investment property strategies

With 40+ years of experience, we have the lenders and programs to make it happen.

Whether it’s your dream home or investment property number five. No guesswork, just proven expertise and real relationships.

Call (510) 589-4096 to discuss your jumbo loan needs or view all purchase loan programs.

Can You Refinance a Jumbo Loan in California?

Yes — jumbo loan refinancing in California works similarly to conforming refinances, with rate-and-term and cash-out options available. Jumbo refinance rates currently run comparable to purchase rates. Requirements mirror purchase jumbos, though they vary by lender: sufficient equity, income documentation, and a solid credit profile.

If you currently hold a jumbo loan at rates above 7%, refinancing could save significantly on monthly payments. Cash-out jumbo refinances typically allow up to 80% LTV, giving you access to your home’s equity for renovations, investments, or other needs.

Explore More Purchase Options

Not sure if a jumbo loan fits your situation? Compare our other purchase loan programs:

• Conforming loans – Under $1.25M, lowest rates
• FHA loans – Low down payment options
• VA loans – Zero down for veterans
• Bank statement loans – Self-employed friendly

View All California Loan Programs →