Jumbo Loan Limits In Santa Clara County Explained

Not sure if your San Jose or Santa Clara home search will require a jumbo loan? You are not alone. In the Bay Area, county loan limits can tip your financing from conforming into jumbo fast, which can change your down payment, rate, paperwork, and timeline. In this guide, you will learn the key differences, how to check the current limit for your county, and simple math to see where your price point lands. Let’s dive in.

Updated: December 2025. Conforming loan limits change annually. Always verify the current limit for your county at the FHFA conforming loan limits page or with your lender before you write offers.

Conforming vs. jumbo loans

Conforming loans meet Fannie Mae and Freddie Mac guidelines and are at or below the county’s conforming loan limit. Because they are eligible for purchase by the agencies, they often have competitive pricing and standardized underwriting.

Jumbo loans exceed the county conforming limit. They are not purchased by Fannie or Freddie and are usually held in a lender’s portfolio or sold to private investors. Underwriting and pricing vary more by lender.

Why it matters for you:

• Rates and fees can differ between conforming and jumbo.
• Documentation for jumbos is often stricter, with higher credit, lower debt-to-income targets, and larger cash reserves.
• Conforming loans with over 80 percent loan-to-value typically require private mortgage insurance, while jumbos often require larger down payments instead of PMI.

Santa Clara loan limits: where to check

Santa Clara County and many Bay Area counties are typically designated high-cost, so their conforming limits are higher than the national baseline. Limits are set by the FHFA and adjust every year.

• Always look up the current year on the FHFA conforming loan limits page.
• Limits vary by property type. Multi-unit properties have higher limits than one-unit homes, so confirm the correct unit count.

High-cost county basics

The FHFA sets a nationwide baseline and a higher cap for high-cost counties. Santa Clara and much of the Bay Area often fall into that higher tier. If you are shopping in Oakland-Hayward-Berkeley or elsewhere in Alameda County, check that county’s figure as well. County lines matter.

Multi-unit properties

Buying a 2–4 unit property increases the conforming limit compared with a one-unit home. If you plan to house-hack or buy a duplex, the higher limits may keep your loan conforming even at a higher price point. Always verify the exact limit by units before you structure your offer.

Is your loan conforming or jumbo?

Use this quick test: Loan amount needed = Purchase price minus your down payment. Compare that number to your county’s limit.

Quick math example

Illustrative example using the FHFA 2024 high-cost one-unit limit of $1,149,825 (confirm the current year before you rely on this number):

• Purchase price: $1,300,000
• To keep the loan conforming: you would need a down payment of $1,300,000 − $1,149,825 = $150,175, which is about 11.6 percent.
• If you put 10 percent down ($130,000), the needed loan would be $1,170,000, which would exceed the illustrative limit, so it would be a jumbo.

How limits change your down payment

• Conforming loans: Programs can allow lower down payments, sometimes 3–5 percent for qualified buyers. If you put less than 20 percent down, you will usually carry private mortgage insurance until you reach lower LTV thresholds.
• Jumbo loans: Many lenders expect 10–20 percent down or more. Some jumbo programs offer 5–10 percent down for highly qualified borrowers, but availability and pricing vary by lender.
• Close to the line: If your target home price sits just above the county limit, a slightly larger down payment may keep you in conforming territory. Run both scenarios with your lender.

Rates, underwriting, and reserves

Rate spreads in practice

Historically, conforming loans often priced a bit lower. In recent years, the gap has narrowed and can flip depending on market conditions. Your credit score, loan-to-value, documentation, property type, occupancy, and total loan size all influence pricing. Shop both options to compare.

Jumbo documentation checklist

Lenders commonly apply tighter standards for jumbos:

• Higher credit score targets for favorable pricing.
• Stricter debt-to-income allowances.
• Larger cash reserves, often measured in months of mortgage payments.
• Full documentation of income and assets, with explanations for large deposits.

Appraisals and valuation

Jumbo loans can require more stringent appraisal reviews and, for unique or high-value homes, sometimes more than one appraisal. In competitive San Jose submarkets, appraisal gaps can occur. If a conforming loan appraisal comes in a bit low, you may need to bridge the gap with extra cash. Jumbo lenders may have tighter valuation tolerances, so plan for that in your timeline.

Options if you are just over the limit

If your price point nudges the county limit, consider these paths:

• Increase your down payment to keep the first mortgage at or below the conforming limit.
• Pair a conforming first mortgage with a second mortgage. This piggyback structure is less common now but still possible with some lenders.
• Shop jumbo programs. Some lenders price jumbos competitively depending on investor appetite.
• Negotiate on price or credits to fit your financing strategy.

Pre-approval checklist for Bay Area buyers

Start early so you can compare conforming and jumbo side by side.

• Estimate your target price range for San Jose, Santa Clara, or Oakland-Hayward-Berkeley.
• Look up the current county limit for the specific county where the property sits using the FHFA conforming loan limits page.
• Calculate your expected loan amount and see if it is conforming or jumbo.
• Gather documentation: 2 years of tax returns, recent pay stubs, bank and investment statements, and explanations for large deposits.
• Get quotes from multiple lender types and ask each for both conforming and jumbo scenarios, including rate, points, APR, fees, reserve requirements, and any overlays.
• Ask about specialty products such as portfolio jumbos or non-QM if your profile is unique.

For plain-language mortgage basics, review the CFPB’s mortgage guide.

Plan your cash and reserves

Beyond the down payment, plan for closing costs and required reserves, especially with jumbos. Many Bay Area lenders ask for 6–12 months of mortgage payments in reserves for jumbo loans. Ask whether retirement or investment accounts can count toward reserves and how liquidity is calculated. Build a cushion so you can respond quickly if an appraisal or underwriting condition requires extra funds.

FHA and VA program notes

FHA and VA do not follow conforming limits.

• FHA sets its own county loan limits. Check your county’s current figure at HUD’s FHA loan limits.
• VA eliminated county loan limits for borrowers with full entitlement, though lenders may still have overlays. Review VA loan limits and entitlement and confirm specifics with your lender.

The bottom line for Santa Clara buyers

In high-priced markets like Santa Clara County and nearby Alameda County, the conforming-versus-jumbo line is a key part of your strategy. Knowing your county limit and running the numbers early helps you lock in the right loan type, avoid surprises, and write stronger offers with confidence.

If you want a clear path, a fast pre-approval plan, and local insight on how sellers view different financing terms, let’s talk. Connect with Andy Sweat for a quick strategy session tailored to your price point and neighborhood targets.

FAQs

What is a conforming loan limit in Santa Clara?

• It is the maximum loan amount eligible for purchase by Fannie Mae or Freddie Mac in Santa Clara County for a given year. Check the current figure on the FHFA limits page before you write offers.

How do I know if my loan will be jumbo?

• Subtract your planned down payment from the purchase price. If the result is above your county’s conforming limit, you will need a jumbo loan.

Do jumbo loans always have higher rates?

• Not always. Jumbos can be slightly higher, but pricing depends on your credit, loan-to-value, documentation, loan size, and lender programs. Compare quotes.

Can I avoid jumbo by using a second mortgage?

• Possibly. Some buyers pair a conforming first mortgage with a second mortgage to keep the first at or below the limit. Availability and pricing vary by lender.

Do FHA and VA follow conforming county limits?

• No. FHA has its own county limits and VA uses entitlement rules. Review the current FHA limits with HUD and VA guidance on entitlement, then confirm with your lender.