The short answer: The conforming loan limit, the largest loan Fannie Mae and Freddie Mac can buy, is $832,750 for a one-unit home in most of California in 2026 and up to $1,249,125 in high-cost counties like Los Angeles and Orange. FHFA will set the 2027 limits in late November using third-quarter home price data, and the new limits take effect January 1. Several large lenders have already started lending at estimated 2027 limits of $845,000 to $850,000. If your loan amount lands just above today's limit, it's worth understanding your options before you assume you need a jumbo loan.
As of October 30, 2026. Loan limits shown are 2026 official figures from FHFA, plus 2027 estimates that individual lenders announced and HousingWire reported. The official 2027 limits have not been announced.
What is the conforming loan limit, and why does it matter?
Fannie Mae and Freddie Mac buy most of the conventional mortgages made in this country, but only up to a set size. That size is the conforming loan limit. A loan above the limit for your county is a jumbo loan, which lenders keep or sell elsewhere, usually with their own, often stricter, requirements (FHFA, Conforming Loan Limit).
Two things trip people up. First, the limit applies to the loan amount, not the price of the home. As a hypothetical, a $1 million home in Riverside County with a $200,000 down payment needs an $800,000 loan, which fits under today's $832,750 limit. Second, the limit depends on the county where the property sits, not where you live.
Where do California counties stand in 2026?
In most of the country, and in much of inland California, the one-unit limit is the $832,750 baseline. In high-cost areas, FHFA sets the limit at 115% of the local median home value, capped at a ceiling of 150% of the baseline, which is $1,249,125 this year (FHFA, Conforming Loan Limit FAQs, 2026).
2026 one-unit conforming loan limits, selected California counties
Exact 2026 one-unit limits from FHFA's county list (FHFA 2026 county list):
- $1,249,125: Los Angeles, Orange, San Francisco, Alameda, Santa Clara
- $1,104,000: San Diego
- $1,035,000: Ventura
- $832,750: Riverside, San Bernardino, Sacramento, Fresno
Two- to four-unit properties have higher limits. The 2026 baseline for a duplex is $1,066,250, and the high-cost ceiling for a duplex is $1,599,375 (Fannie Mae, Loan Limits).
How will FHFA set the 2027 limits?
By formula. Under the Housing and Economic Recovery Act of 2008, FHFA moves the baseline by the year-over-year change in its House Price Index from the third quarter of one year to the third quarter of the next. For 2026, prices rose about 3.26%, which took the baseline from $806,500 to $832,750 (FHFA, November 25, 2025). The baseline doesn't go down when prices fall; it stays put until prices recover (FHFA FAQs).
The most recent data point came out this week. On October 27, FHFA reported that national home prices rose 2.4% from August 2025 to August 2026 (FHFA, October 27, 2026). The number that actually sets the limit, the third-quarter figure, comes out with FHFA's next report on November 24.
Hypothetical illustration only, not a forecast: if the official third-quarter measure also showed a 2.4% increase, the 2027 baseline would be about $852,700 and the high-cost ceiling about $1,279,050. The real number could be higher or lower, because FHFA uses a different version of the index for the limit than the monthly headline.
Why are some lenders already using 2027 limits?
Because the formula is predictable enough that a few large lenders are willing to bet on a floor. In September, HousingWire reported that Rocket Mortgage and CrossCountry Mortgage announced estimated 2027 one-unit limits of $845,000, UWM announced $847,440, and Pennymac announced $850,000, with Pennymac and Rocket saying theirs took effect immediately (HousingWire, September 16, 2026; HousingWire, September 10, 2026).
Official 2026 baseline vs. early 2027 estimates some lenders announced
How can a lender do that before FHFA announces anything? The limits apply based on when a loan is delivered to Fannie Mae, not when it closes. Fannie Mae says the 2026 limits applied to loans delivered in 2026 even if they were originated before January 1 (Fannie Mae, Loan Limits). So a lender can close a loan this fall and hold it until the new limits kick in. The lender carries the risk that FHFA's final number comes in lower than its estimate.
Who should pay attention to this?
Mostly people whose loan amount falls in a narrow band just above today's limit:
- Buyers in baseline counties like Riverside, San Bernardino and Sacramento who need a loan somewhere between $832,750 and the mid-$800,000s.
- Buyers in LA, Orange and the Bay Area right at the $1,249,125 ceiling, since the ceiling is 150% of the baseline and rises with it.
- Owners refinancing a balance just over today's limit, including cash-out refinances.
- Small multifamily buyers, since duplex through fourplex limits rise with the baseline too.
If your loan is well under the limit, none of this changes your plan. If your loan is well above the ceiling, you're in jumbo territory either way.
Does the 2027 limit change matter for you?
| Worth a closer look? | What to ask | |
|---|---|---|
| Loan well under your county's limit | No nothing changes | Focus on rate, costs and your lock |
| Loan just above your county's 2026 limit | Yes an early-limit or January closing may keep it conforming | Which lenders honor estimated 2027 limits, and on what terms |
| In a high-cost county near $1,249,125 | Yes the ceiling rises with the baseline | Your county's exact 2026 limit and timing |
| Loan far above the ceiling | No jumbo either way | Compare jumbo reserve and down payment rules |
If I'm near the line, what are my options?
- Find your county's exact limit on FHFA's list. San Diego and Ventura, for example, sit between the baseline and the ceiling, and their 2027 limits depend on local median prices as well as the national formula.
- Adjust the loan amount. A slightly larger down payment, or a seller credit that lets you keep more cash for the down payment, can bring a loan under today's limit. My guide to seller credits this fall covers how buyers are negotiating them right now.
- Ask about lenders using estimated 2027 limits, and get in writing what happens if FHFA's official number comes in lower.
- Consider timing. If you're early in the process, a closing in January falls under the official 2027 limits, though you'd be trading certainty about the limit for uncertainty about rates and the home.
- Compare a jumbo anyway. Jumbo pricing and requirements vary by lender, and for some borrowers a jumbo isn't the worse option.
Derek\'s take
Every fall I see a handful of buyers who think they need a jumbo loan when they're really $10,000 or $15,000 over the line. That gap is often solvable, either with the loan structure, the down payment or the timing, and this year a few lenders have already moved their line up. I wouldn't change a home purchase around a loan limit that hasn't been announced, but if your number is close, it's worth running both versions before you write an offer. I'm happy to look at yours. Book a call with me: thirty minutes, no credit pull, no obligation.
Frequently asked questions
What is the 2026 conforming loan limit in California?
For a one-unit home it's $832,750 in baseline counties such as Riverside, San Bernardino and Sacramento, and up to $1,249,125 in high-cost counties such as Los Angeles, Orange, San Francisco, Alameda and Santa Clara. San Diego is $1,104,000 and Ventura is $1,035,000.
When will the 2027 conforming loan limits be announced?
FHFA updates the limits at the end of November, after its third-quarter House Price Index data comes out. FHFA's next House Price Index report is scheduled for November 24, 2026. The new limits take effect January 1, 2027.
Can the conforming loan limit go down?
Not under FHFA's current approach. If national prices fall, the baseline stays at its prior level until prices recover, and county limits are held harmless from declines.
Are the $845,000 and $850,000 limits official?
No. They are estimates that individual lenders announced for their own programs. Only FHFA sets the official limits, and not every lender honors estimated limits.
Does the limit cap how expensive a home I can buy?
No. It caps the loan amount for a conforming loan. You can buy a more expensive home with a larger down payment or a jumbo loan.
This article is general education, not financial advice, and not an offer of credit. Lender programs mentioned are as reported in the press and may change; the hypothetical illustration is not a forecast.
Sources
- FHFA, FHFA Announces Conforming Loan Limit Values for 2026 (November 25, 2025)
- FHFA, 2026 Conforming Loan Limits by County (HERA-based)
- FHFA, Conforming Loan Limit FAQs (2026)
- FHFA, Conforming Loan Limit
- FHFA, House Price Index Up 0.3 Percent in August; Up 2.4 Percent from Last Year (October 27, 2026)
- Fannie Mae, Loan Limits
- Freddie Mac, 2026 Loan Limits Increase by 3.26%
- HousingWire, Pennymac and UWM 2027 conforming loan limits (September 16, 2026)
- HousingWire, Rocket 2027 conforming loan limit (September 10, 2026)
This article is general education, not a commitment to lend, an offer of credit, or tax, legal or investment advice. All loans are subject to credit approval, income and asset verification, and property appraisal. Programs, rates, terms and limits change without notice; figures are current as of the publish date. Derek Shao, NMLS #242117, CA DRE #01358261. Financial Dynamics, Inc. DBA Emory Financial, Company NMLS #393986. Equal Housing Opportunity.
