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High-Balance Loans in California: The In-Between Option

In high-cost California counties, there is a special loan that sits between a regular conforming loan and a jumbo loan. It is called a high-balance loan (or "super-conforming"). This page explains what it is, which counties have it, and why it can save you money compared to a jumbo loan — in simple words.

If your loan is a little too big for the normal limit but still inside your county's high-cost ceiling, a high-balance loan may be your best friend.

New two-story homes on a curved California street eligible for high-balance loans
Quick answer

A high-balance loan is a conventional loan above the baseline limit but at or below your county's high-cost ceiling. In 2026, that means a loan between $832,750 and $1,249,125 in high-cost California counties like Los Angeles, Orange, and San Francisco. It still follows Fannie Mae and Freddie Mac rules, so it is usually easier and cheaper than a jumbo loan.

What this means

California has two conforming limits:

Baseline limit: $832,750 in most counties.
High-cost ceiling: Up to $1,249,125 in expensive counties.

A high-balance loan lives in the gap between those two numbers. Because it still follows agency rules, you often get lower down payment options than jumbo, standard credit guidelines, and simpler approval than a jumbo loan. In short, it gives high-cost California buyers a "regular loan" feel even though the dollar amount is large.

Step by step

How It Works (Step by Step)

1
Find your county's ceiling. In most counties it is $832,750; in high-cost counties it can reach $1,249,125.
2
Check your loan size. If it is above $832,750 but at or below your ceiling, it is high-balance.
3
Follow agency rules. High-balance loans use Fannie Mae and Freddie Mac guidelines.
4
Choose your down payment. Often lower than jumbo, though slightly higher than a basic conforming loan.
5
Close. Once approved, it works much like a standard conventional loan.

2026 California High-Balance Range

AreaHigh-balance applies to loans...
Most California counties(No high-balance band — baseline is $832,750)
High-cost counties (LA, Orange, SF, San Mateo, Santa Clara, Alameda, Marin, and others)Between $832,750 and $1,249,125

If your loan is above $1,249,125 in a high-cost county, you move into a jumbo loan. See Jumbo.

Requirements (At a Glance)

RequirementTypical high-balance rule
Credit score620+, though higher helps
Down paymentOften a bit more than basic conforming
PMIRequired under 20% down, removable later
Debt-to-incomeAgency guidelines apply
PropertyPrimary, second home, or investment

Benefits

Easier than jumbo. It follows standard agency rules.
Lower down payment than jumbo. You may not need 10%–20%.
PMI can be removed. Like other conventional loans, at about 20% equity.
Great for high-cost counties. Lets you borrow more without going jumbo.
Single loan. No need to split into two mortgages.

Potential Drawbacks (The Honest Part)

Only in high-cost counties. Most counties only have the $832,750 baseline.
Slightly stricter than basic conforming. Down payment and pricing can be a touch higher.
Limited ceiling. Above $1,249,125, you still need a jumbo loan.
Rate differences. High-balance pricing can differ from standard conforming.
Real-world California examples

What it looks like in practice

Example 1 — Avoiding jumbo in Santa Clara.
Example 1 — Avoiding jumbo in Santa Clara.

Priya buys a $1.15 million home. Because that is below the $1,249,125 ceiling, she uses a high-balance loan with agency rules instead of a jumbo loan — simpler approval and a smaller down payment.

Example 2 — Just over the baseline in Los Angeles.
Example 2 — Just over the baseline in Los Angeles.

Marcus needs a $900,000 loan. That is above the $832,750 baseline but below the high-cost ceiling, so a high-balance loan fits perfectly.

Example 3 — Crossing into jumbo in Orange County.
Example 3 — Crossing into jumbo in Orange County.

The Lee family needs $1.35 million. Since that is above $1,249,125, they cannot use high-balance and must use a jumbo loan. See Jumbo.

Examples are for learning only. Your eligibility and terms depend on your finances and county.

Common mistakes

1Assuming you need a jumbo loan. In high-cost counties, high-balance may work first.
2Not checking the county ceiling. Limits differ across California's 58 counties.
3Forgetting PMI removal. Like other conventional loans, you can drop it later.
4Mixing up baseline and ceiling. The baseline is $832,750; the high-cost ceiling can reach $1,249,125.
5Skipping the comparison. Always compare high-balance vs jumbo near the ceiling.
Good questions

Frequently asked questions

A conventional loan above the baseline limit but at or below your county's high-cost ceiling. It follows Fannie Mae and Freddie Mac rules.

Next steps

Compare high-balance and jumbo near the ceiling

If you are buying in a high-cost California county and your loan is just over the baseline, a high-balance loan can save you the hassle and cost of a jumbo. Always compare the two near the ceiling. EZ Online Mortgage can check your county's exact 2026 limits and show whether high-balance or jumbo is the better fit for your purchase.

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This page is for education only. It is not a loan offer or a promise of approval, rates, or terms. County limits and qualification depend on your individual circumstances. Equal Housing Opportunity · NMLS #362311 · CA DRE #01871814.

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