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.
California Conforming Loan Limits 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.
California Conventional vs. FHA Loans
- 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
California PMI Options & Removal
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.
Calculate Your Conventional Payment
Use our mortgage calculator to compare payments with and without PMI. See how extra payments can help you pay off your mortgage faster.
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
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From the blog & learning center
Conventional Loan Guides & Articles
2026 Conforming Loan Limits: Complete Homebuyer Guide
FHFA raised 2026 limits to $832,750 baseline and $1,249,125 for high-cost areas. See FHA limits and find your county in our guide.
Read more
The Complete Guide to Manufactured Home Financing: Everything You Need to Know in 2026
Discover how to finance a manufactured or modular home with conventional, FHA, VA, and USDA loans. Learn the difference between manufactured and modular homes, eligibility requirements, and why first-time buyers love this affordable path to homeownership.
Read moreFannie Mae Drops 620 Credit Score Minimum for 2026
Fannie Mae eliminated its 620 credit floor, opening conventional loans to millions more borrowers. See what this means for your options.
Read more