California loan guide
High-Balance Conforming Loan in California
A high-balance conforming loan in California is a conventional loan above the $832,750 baseline limit and at or below the county limit, which reaches $1,249,125 in high-cost counties; a loan above the county limit is jumbo, never high-balance.
In this guide
Key numbers for 2026
| Item | Figure | Source |
|---|---|---|
| Baseline one-unit limit | $832,750 | FHFA, 2026 conforming loan limit release |
| High-cost ceiling, one-unit | $1,249,125 | FHFA, 2026 conforming loan limit release |
| Los Angeles County one-unit limit | $1,249,125 | FHFA, 2026 conforming loan limit values, county list |
| Maximum loan-to-value, high-balance, one-unit principal residence | 95 percent | Fannie Mae, Eligibility Matrix |
| Maximum loan-to-value, high-balance, two-unit principal residence | 85 percent | Fannie Mae, Eligibility Matrix, Note (2) |
| Maximum loan-to-value, high-balance, three-to-four-unit principal residence | 75 percent | Fannie Mae, Eligibility Matrix, Note (2) |
High-cost limits are set where 115 percent of the local median home value exceeds the baseline, with the ceiling set at 150 percent of the baseline.
Who it fits, and who should look elsewhere
A high-balance loan fits a buyer in a high-cost county whose loan lands in the band between baseline and county limit and who wants agency underwriting instead of a jumbo investor's reserve and documentation demands. It fits a buyer who can meet the lower loan-to-value ceiling in this band. Look elsewhere under numeric rules: if the loan is $832,750 or less, it is a standard conforming loan in every county and should be priced as one; if the loan exceeds the county limit, it is jumbo; and if the property sits in a baseline county, any loan above the baseline is jumbo there no matter how the listing describes the price.
Requirements: program rules and lender overlays
Program rules
Fannie Mae requires high-balance loans to be underwritten through Desktop Underwriter, with no manual-underwriting path in this band, while Freddie Mac super-conforming loans are underwritten through Loan Product Advisor.
High-balance loans are capped at 95 percent loan-to-value for a one-unit principal residence, so a down payment of at least 5 percent of the price is required in that structure.
Automated underwriting weighs the full file: credit history, reserves, income stability, and debt load. Pricing in this band carries agency adjustments that standard conforming loans do not, so two loans with the same rate can carry different total costs.
Lender overlays
Lenders and mortgage insurers may demand more reserves at this loan size, cap debt ratios below the automated ceiling, or restrict condominiums and properties with accessory units. Those extra demands are overlays when they exceed the agency guide. At this loan amount, shopping overlays matters more than at smaller sizes because a reserve condition can require a large amount of documented cash.
Real costs
| Cost | How it works |
|---|---|
| Down payment | At least the amount needed to reach the loan-to-value ceiling in this band; see the worked example for the arithmetic at the ceiling. |
| Private mortgage insurance | Applies above 80 percent loan-to-value, with premiums set by the insurer from credit, loan-to-value, and coverage. |
| Pricing adjustments | Agency loan-level price adjustments for the high-balance band and for credit and loan-to-value combinations; compare total loan costs, not rate alone. |
In the high-balance band, borrower-paid insurance follows the standard conventional removal path: cancellation by request once the balance is scheduled to reach, or is prepaid down to, 80 percent of the original value, so long as the borrower is current, the payment history is sound, no second lien is present, and the property value has not fallen.
Automatic termination in this band lands when the scheduled balance reaches 78 percent of the original value for a current borrower, and coverage may not extend beyond the midpoint of the loan term, however large the original balance was.
California specifics
County is destiny in this band. Los Angeles, Orange, and the coastal Bay Area counties carry the ceiling, several coastal counties sit between baseline and ceiling, and most inland counties sit at the baseline with no high-balance band at all. The same loan amount can therefore be standard conforming in one county, high-balance in a second county, and jumbo in a third. Check the county of the property, not the county of a mailing address or a prior home, because the limit follows the property location.
A worked California example in Los Angeles County
On a $1,100,000 purchase in Los Angeles County with 5 percent down, the down payment is $55,000 and the loan is $1,045,000.
A $1,045,000 loan is above the $832,750 baseline and at or below the $1,249,125 Los Angeles County limit, so it is a high-balance conforming loan.
The loan-to-value sits exactly at the ceiling for this band, so any reduction in appraised value below the price would break the structure unless the buyer adds cash or the price changes. No rate or payment is quoted, because neither can be derived from price, down payment, and county alone.
How a purchase proceeds, step by step
Application and the county-tier check
A high-balance application opens with the property's county, because the requested loan amount is tested against that county's conforming limit before anything else is priced. The Loan Estimate follows on the federal clock, delivered or mailed no later than three business days after application, and on a loan of this size its loan-cost figures deserve line-by-line attention since agency pricing adjustments for the high-balance band sit inside them.
Desktop Underwriter only, at a lower loan-to-value ceiling
Documentation runs to pay records, tax documents where the automated findings call for them, asset statements proving both the down payment and the larger reserves a loan of this size tends to demand, and explanations for big deposits or credit blemishes. Every high-balance file goes through Desktop Underwriter, with Loan Product Advisor handling the Freddie Mac super-conforming equivalent, and no manual-underwriting fallback exists when the automated answer is no. The system tests earnings stability and continuance, the debt load against program ratios, and documented funds, all under the ninety-five percent loan-to-value ceiling that defines the band.
Appraisal risk at the band ceiling
Because purchase loan-to-value is computed from the lesser of the contract price or the appraised value, an appraisal below price does double damage in this band: it raises loan-to-value past a ceiling that is already lower than the standard conforming ceiling, and the shortfall must be cured with cash, a renegotiated price, or a restructured loan. There is no government property-standards checklist on a high-balance appraisal, but marketability and value support carry the whole file.
Conditions and the Closing Disclosure at this loan size
Clear every automated and lender condition in writing, and treat reserve documentation as a closing item in its own right rather than a formality. The borrower must have the Closing Disclosure at least three business days before consummation, and the changes federal rules single out after delivery restart the three-business-day wait, which at this loan size can also endanger a rate lock priced for the high-balance band.
Signing, funding, and why rescission does not apply
After signing a high-balance purchase there is no federal right to cancel, because a purchase is a residential mortgage transaction and the Regulation Z rescission right does not attach to it. That right lives in principal-home refinancing, where cancellation generally runs until midnight of the third business day after the last of consummation, delivery of the rescission notice, or delivery of all material disclosures, and where a refinance done again with the same creditor is rescindable only for the new money advanced. Purchase signing is followed by funding and recording, after which the purchase contract controls delivery of the keys.
Mistakes and downsides that cost money
Calling a loan high-balance because the price is high. Classification follows the loan amount against the county limit. A large down payment can pull a high price back to standard conforming, and a small down payment in a baseline county produces a jumbo loan, not a high-balance loan.
Budgeting for a small-down-payment structure that this band does not allow. A buyer planning on 3 percent down in this band faces a shortfall of 2 percent of the price, which is $22,000 on a $1,100,000 purchase.
Ignoring the appraisal cliff. At the loan-to-value ceiling, a value even slightly below price forces cash, a price change, or a new structure, and the purchase contract deadline does not pause while the parties negotiate.
Questions buyers ask
What is the difference between high-balance and jumbo?
A high-balance loan stays within the county conforming limit and is sold to an agency; a jumbo loan exceeds the county limit and follows investor rules. The dividing line is the county limit for the property, not a national round number.
How much down payment does a high-balance loan require?
For a one-unit principal residence, the 95 percent loan-to-value cap means at least 5 percent down in that structure. Larger down payments can improve pricing and mortgage-insurance cost even though they are not required for eligibility.
Which counties have a high-balance band?
Counties whose limit rises above the baseline have a band, and counties at the ceiling have the widest band. Counties at the baseline have no band at all, so the FHFA county list for the property county is the deciding document.
Can a duplex be bought with a conforming loan?
Yes. A duplex is a two-unit property, and conforming loans cover one-to-four-unit principal residences. The loan-to-value cap depends on the tier: a high-balance two-unit loan is capped at 85 percent loan-to-value under the Fannie Mae Eligibility Matrix, so at least 15 percent down in that structure, while a standard conforming two-unit purchase or limited cash-out refinance underwritten through Desktop Underwriter can reach 95 percent loan-to-value. Either way, the loan amount must fit the county limit for a two-unit property, and a lender's overlays can be stricter than either cap.
Is a high-balance loan harder to qualify for than a standard conforming loan?
Underwriting runs through the same automated systems, but the loan-to-value ceiling is lower and pricing adjustments apply in this band. Reserve and documentation demands from lenders also tend to grow with loan size.
Sources
- FHFA, Conforming Loan Limit Values for 2026, published November 25, 2025; fetched October 14, 2026.
- Fannie Mae, Eligibility Matrix (August 5, 2026), Standard Eligibility Requirements — Desktop Underwriter, and Notes (1) and (2) on high-balance loan-to-value limits; fetched October 14, 2026.
- Fannie Mae Selling Guide B5-1-02, High-Balance Pricing, Mortgage Insurance, Special Feature Codes, and Delivery Limitations; fetched October 14, 2026.
- CFPB, When can I remove private mortgage insurance (PMI) from my loan?; fetched October 14, 2026.
- CFPB, Regulation Z, 12 CFR 1026.19 and 1026.23; fetched October 14, 2026.
