California Conventional Loans 2026
Conventional mortgages offer California homebuyers the most flexibility with conforming limits up to $1,249,125, removable PMI, and competitive rates for well-qualified borrowers. The gold standard for home financing.
Yes, California buyers can get a conventional loan with as little as 3% down, and its PMI is removable at 20% equity, unlike FHA. High-balance conforming limits reach $1,249,125 in California's high-cost counties. And first-time buyers under the area income limit can use the Price Equalizer to get elite pricing regardless of down payment. As a broker with access to 240+ wholesale lenders, I help California buyers structure conventional financing to remove PMI fast and price it well. Learn how to get rid of PMI, explore the first-time buyer Price Equalizer, or start with a pre-approval.
What are today's conventional rates in California?
Today’s 30-Year Fixed (Conventional) Rate
Conventional – Primary Residence
Rate Assumptions
30 year fixed, $300k loan amount, $400k value, purchase, FICO Credit Score 759, Zipcode 95111
APR & Disclosures
The Annual Percentage Rate (APR) shown reflects the cost of credit over the loan term, including applicable fees, and is based on the assumptions above. Your actual rate and APR depend on your credit profile, loan amount, property, occupancy, and other factors. For information purposes only and does not constitute a loan approval or commitment to lend. Rates are subject to change without notice.
Can first-time buyers get elite pricing with a small down payment?
The California Price Equalizer
Yes. California's high-cost markets carry the steepest Loan-Level Pricing Adjustments in the country, the fees that normally penalize a smaller down payment. A Fannie Mae rule waives them entirely for first-time buyers whose qualifying income is at or below the area limit, which in California's high-cost metros rises to 120% of Area Median Income. That means a qualifying first-time buyer with 3, 5, or 10% down can be priced the same as someone putting 40% down. We call it the Price Equalizer. In San Jose, the nation's highest limit, a household earning up to $177,643 can qualify.
See how the Price Equalizer works, and check your area's limitAMI figures are pulled from the current Fannie Mae area limits. Because AMI is address-specific, always confirm your exact limit for your address.
What are the California conforming loan limits for 2026?
Conforming loans are backed by Fannie Mae and Freddie Mac, offering better rates than jumbo loans. Limits increased for 2026 in most California counties.
| County | 2026 Limit | 2025 Limit | Change |
|---|---|---|---|
San Francisco | $1,249,125 | $1,209,750 | +$39,375 |
Los Angeles | $1,249,125 | $1,209,750 | +$39,375 |
Santa Clara | $1,249,125 | $1,209,750 | +$39,375 |
Orange | $1,249,125 | $1,209,750 | +$39,375 |
San Diego | $1,104,000 | $1,077,550 | +$26,450 |
Alameda | $1,249,125 | $1,209,750 | +$39,375 |
Sacramento | $832,750 | $806,500 | +$26,250 |
Riverside | $832,750 | $806,500 | +$26,250 |
Verified as of July 2026 (FHFA/HUD)
Need More Than $1.2M?
For loans above conforming limits, we offer competitive jumbo financing with rates as low as conventional for well-qualified borrowers.
Conventional or FHA: which is better in California?
- PMI can be removed at 20% equity
- No upfront mortgage insurance fee
- Lower total cost with 700+ credit
- Better rates with 740+ credit
- No property condition requirements
- 3.5% down with 580 credit score
- More flexible credit guidelines
- Higher DTI allowed (up to 50%)
- ✗MIP for life of loan (most cases)
- ✗1.75% upfront MIP required
How do you remove PMI on a California conventional loan?
Unlike FHA loans, conventional mortgage insurance can be removed, saving you thousands over time.
20% Down = No PMI
Put 20% down and skip PMI entirely. On a $900,000 Bay Area home, that's $180,000 down but saves $350-$500/month in PMI.
Automatic PMI Removal
PMI automatically terminates at 78% LTV based on original amortization schedule, or request removal at 80% with a new appraisal.
Lender-Paid MI (LPMI)
Accept a slightly higher rate (0.125-0.25%) in exchange for no monthly PMI. Good if you plan to refinance or sell within 5-7 years.
80-10-10 Piggyback
80% first mortgage + 10% HELOC + 10% down = no PMI. Popular strategy in California's high-cost markets.
Estimate Your California Monthly Payment
California's 2026 conforming loan limit is $1,249,125 for a single-unit home. Adjust the price, down payment, rate, and term to see your full monthly payment.
Monthly Payment Calculator
Calculate your estimated monthly mortgage payment including taxes, insurance, and HOA dues
Annual % of home price. Adjust in eighths (0.125%).
Annual % of home price. Adjust in eighths (0.125%).
Flat monthly homeowner association dues.
California Conventional Loan FAQs
What is the conforming loan limit in California for 2026?
The 2026 conforming loan limit in California ranges from $832,750 in standard counties to $1,249,125 in high-cost areas including San Francisco, Los Angeles, Orange County, and the Bay Area. Loans above these limits require jumbo financing.
How can I avoid PMI on a California conventional loan?
You can avoid PMI on California conventional loans by putting 20% or more down, using lender-paid mortgage insurance (LPMI) with a slightly higher rate, piggyback loans (80-10-10), or requesting PMI removal once you reach 20% equity through payments or appreciation.
What credit score do I need for a conventional loan in California?
California conventional loans typically require a minimum credit score of 620, though 740+ scores get the best rates. With scores of 700+, you'll qualify for lower LLPA pricing adjustments and better mortgage insurance rates if needed.
Should I choose a 15-year or 30-year conventional mortgage in California?
A 15-year mortgage offers rates about 0.5% lower and builds equity faster, but has higher monthly payments. For a $700,000 loan, a 15-year saves roughly $200,000 in interest but costs about $2,000 more per month than a 30-year.
Explore More California Loan Options
Ready for a California Conventional Loan?
Emmett Clark | CA-DRE #01408122
Get prequalified in minutes and see your conventional loan options with today's competitive rates.
From the blog & learning center
Conventional Loan Guides & Articles
What Is PMI and How Do I Get Rid of It?
Private mortgage insurance (PMI) is a monthly charge added to conventional loans when you put down less than 20%. On most conventional loans it cancels automatically once you reach 22% equity, and you can request removal at 20%.
Read more
2026 Conforming Loan Limits by County: High-Cost Areas in the 18 States I Serve
The 2026 baseline conforming loan limit is $832,750, but 9 of the 18 states I'm licensed in have counties with higher limits — here's the exact figure for every above-baseline county.
Read more
Down Payment Assistance Programs by State
Most states offer some form of down payment assistance, and many buyers qualify without realizing it.
Read more
Down Payment Reality Check: How Much You Actually Need
You don't need 20% down to buy a house.
Read more
How Much Down Payment Do You Need for a Conventional Loan?
The 20% rule is a myth. On a conventional loan you can put down as little as 3% as a first-time buyer or 5% otherwise, with 5% required on high-balance loans. Here is how to find your real down payment number.
Read more
How to Buy a House With Little Money Saved
You can buy a home with very little saved by combining a low or zero down payment loan with down payment assistance and seller-paid or lender-paid closing costs.
Read more