08/11/2026
Jumbo loans are often associated with luxury homes. But at Silicon Valley price points, many buyers use them simply to finance their home purchases.
So what actually makes a loan jumbo?
A conforming loan falls within the applicable loan limit set by the Federal Housing Finance Agency and meets Fannie Mae or Freddie Mac guidelines. A loan that exceeds the conforming limit for the county where the property is located is considered jumbo.
For 2026, the conforming loan limit in most of the country is $832,750.
But in most Bay Area counties—including Santa Clara, San Mateo and Alameda—the limit is higher:
$1,249,125
Loans above $832,750 but no more than $1,249,125 are considered high-balance conforming loans in these counties. Go above $1,249,125 in loan amount, and you’re in jumbo territory.
Remember, the limit applies to the loan amount—not the purchase price. With 20% down, a purchase price above approximately $1.56 million would cross into jumbo territory. Put down more, and that purchase-price threshold moves higher.
Jumbo rates may also surprise you. Many lenders compete for well-qualified jumbo borrowers in Northern California, so a jumbo rate can sometimes be comparable to—or even lower than—a high-balance conforming rate.
However, jumbo loans typically involve more detailed underwriting and stricter qualification requirements. Guidelines aren’t standardized, and lenders may differ in how they evaluate cash reserves, liquid assets, credit, debt-to-income ratios, and the history and expected continuation of RSU or bonus income.
The same buyer may receive different answers from different lenders. That’s why it’s important to compare the complete loan—not just the advertised rate.
Not sure which side of the line your purchase falls on? Let’s run the numbers before you fall in love with a house.
I’m Nancy Dinshaw, your Silicon Valley real estate advisor. Follow for local market insights, neighborhood guides, and practical tips for buying and selling in the Bay Area.
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Nancy Dinshaw
Broker Associate | DRE #01924283
📲 (650) 549-5539
📧 [email protected]
🌐 liveinthebay.com
Source: fhfa.gov
