The conforming loan limit is the maximum mortgage amount that Fannie Mae and Freddie Mac will purchase or guarantee. For 2025, the limit in California's high-cost counties is $1,209,750 for a single-family home — the highest in the nation and a significant advantage for California homebuyers.
Why the Limit Matters
Loans within the conforming limit generally offer better interest rates, lower fees, and easier qualification compared to jumbo loans (which exceed the limit). Because Fannie Mae and Freddie Mac guarantee these loans, lenders face less risk and pass the savings to borrowers.
For California buyers, the $1,209,750 limit means a much larger range of properties can use conforming financing compared to other states. A buyer putting 20% down can purchase a home up to approximately $1,512,000 and still use a conforming loan — covering the majority of properties in most California markets.
Multi-Unit Limits
The conforming limit increases for multi-unit properties. In California's high-cost counties, the 2025 limits are $1,548,975 for duplexes, $1,872,225 for triplexes, and $2,326,875 for four-unit properties. This is excellent news for California investors using house-hacking strategies with FHA or conventional financing.
When You Need a Jumbo Loan
If your loan amount exceeds $1,209,750, you enter jumbo territory. This is common in California's most expensive markets — Newport Beach, Beverly Hills, Palo Alto, San Francisco, and Malibu regularly have properties requiring jumbo financing.
The good news: jumbo rates in California are often competitive with conforming rates for strong borrowers. Save Financial works with multiple jumbo lenders and regularly secures rates at or below conforming levels for qualified applicants.
Strategic Considerations
If you're near the conforming limit, the decision between a larger down payment (to stay conforming) and a smaller down payment (going jumbo) deserves careful analysis. Save Financial runs both scenarios for clients in this situation to determine which approach saves the most money overall.
Contact us at (888) 703-1840 for a personalized analysis of your conforming vs. jumbo options.
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Expert Contributor
Mike Baasti, Licensed Mortgage Broker
Expert contributor to Mortgage Guide California. Licensed mortgage broker (Sponsored by Save Financial, Inc. (NMLS #377740), DRE #01875766) and founder of Save Financial, Inc. in Newport Beach, CA. 20+ years originating conventional, FHA, VA, jumbo, and specialty loans across California.