Crossing the conforming loan limit by even $1 bumps you into jumbo territory. That means a higher rate, stricter qualification, and more cash tied up in reserves.
In California, the conforming limit is $832,750 in standard counties and $1,249,125 in high-cost counties. If your loan amount is close to either line, it's worth doing the math before you accept a jumbo.
I'm Bill McCoy (CA DRE #01212512). Here are three strategies I use with clients every week.
1. Put More Down
The simplest move. A bigger down payment shrinks your loan below the conforming threshold.
Example:
- Home price: $900,000
- 5% down ($45K) = $855K loan — jumbo
- 10% down ($90K) = $810K loan — conforming
That extra $45K down saves you roughly 0.5% on your rate. On an $810K loan, that's about $300/month — or $108K over 30 years.
Is it worth tying up the extra cash? If you're staying 10+ years, almost always yes.
2. Use a Piggyback Loan (80-10-10)
A piggyback loan splits your financing into two loans so the first mortgage stays conforming.
Structure:
- 10% down payment
- 80% first mortgage (conforming rate)
- 10% second mortgage (HELOC or home equity loan)
Example on a $1M home:
- Down: $100K (10%)
- First mortgage: $800K at 6.25% (conforming)
- Second mortgage: $100K at 8.50% (HELOC)
The blended rate comes in lower than a straight jumbo at 6.75%. You avoid jumbo underwriting entirely, and you can pay off the HELOC aggressively once you're in the home.
Trade-off: You're carrying two loans and the HELOC rate is variable. But for many buyers, the math still wins. Full piggyback breakdown here.
3. Buy in a High-Cost County
California's high-cost counties let you borrow up to $1,249,125 at conforming rates. That's $416K more than standard counties.
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Real example:
- Same $900K loan
- Ventura County (high-cost): conforming at 6.25%
- Kern County (standard): jumbo at 6.75%
If you're flexible on location, this difference is free money. High-cost counties include LA, Orange, San Diego, San Francisco, San Mateo, Santa Clara, Alameda, Marin, Ventura, Santa Barbara, Santa Cruz, and Napa.
See all California county limits for 2026
Which Strategy Fits?
Close to the limit ($830K-$860K)? Put more down. Simplest path.
Buying at $900K-$1.1M? A piggyback loan often makes sense.
Flexible on where you buy? High-cost counties give you the most room.
Well above $1.25M? You're in jumbo territory regardless. Focus on getting the best jumbo rate instead. Compare jumbo vs conforming details here.
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Run the Numbers With Us
Every situation is different. We'll calculate exactly where you land — conforming, high-balance conforming, or jumbo — and find the lowest rate for your scenario.
Better Offers Inc | CA DRE #01212512