Getting a conventional loan in California: numbers, limits and rules

Conforming limit $832,750, median about $790,000, property tax about 0.71%: those three figures decide most of what a conventional mortgage costs in California. Below, the down payment and monthly numbers at 3%, 5%, 10% and 20% down, the month PMI can end, and the state rules a conventional borrower here should know.

Conforming or jumbo in California?

Two numbers decide the question in California: the 2026 conforming limit of $832,750 and the price you pay. Keep the loan at or under the limit — by price, by down payment, or with a conforming first plus a second lien — and you get Fannie/Freddie pricing and flexibility (3% down programs, automated underwriting, appraisal waivers). At the state median of $790,000, every scenario below is conforming. Every California county is in the table below; see conforming loan limits and jumbo loans.

2026 conforming loan limits by county in California

Loan limits in California run from the $832,750 baseline (41 counties) to $1,249,125 in Alameda County, Contra Costa County, Los Angeles County and 7 more, the national ceiling of 150% of baseline; 17 counties are above baseline in 2026. Two-, three- and four-unit limits follow the same county pattern.

Source: FHFA, Conforming Loan Limit Values for 2026 (county list, mortgages acquired in calendar year 2026). Limits are for Fannie Mae and Freddie Mac loans; FHA and VA use their own county figures.

The numbers: 3%, 5%, 10% and 20% down in California

Illustrative 6.5% 30-year fixed rate, principal and interest only; mortgage insurance at typical market rates for each down payment (it varies with credit score); property tax at the state’s approximate 0.71% effective rate. Homeowners insurance and any HOA come on top. None of it is an offer.

For other loan amounts and rates, the payment tables show principal and interest, total interest and the PMI break points.

Cancelling mortgage insurance: the dates

Mortgage insurance on a conventional loan is temporary. With only the scheduled payments at 6.5%, the California buyer who put 5% down reaches the 80% request point after about 10 years and 4 months and the 78% automatic point after about 11 years and 3 months; with 10% down the request point comes after about 7 years and 11 months. Paying an extra $474 a month toward principal, or asking for cancellation on a new appraisal after two years of appreciation, shortens the clock. The full rules are on how to remove PMI.

Recording taxes, transfer taxes and closing practice

California uses neutral escrow rather than a roundtable closing: independent escrow companies licensed by the DFPI under the Escrow Law (Financial Code § 17000 et seq.) or title-company escrow departments hold documents and money, and buyer and seller sign separately. No attorney is involved in a typical residential transaction. Funding is dry — the escrow holder records the deed of trust with the county recorder and disburses only after recording is confirmed. Custom differs by region: escrow fees are split in Southern California and usually paid by the buyer in the north.

California has no mortgage recording tax and no intangible tax on the note. The documentary transfer tax ($1.10 per $1,000 at the county level, with additional city taxes in Los Angeles, San Francisco, Oakland, San Jose and other charter cities) applies to the deed, not the loan. Recording a deed of trust costs the county fee plus the $75-per-document Building Homes and Jobs Act fee (capped at $225 per transaction), from which owner-occupied purchase documents are exempt. California counties charge a documentary transfer tax of $1.10 per $1,000 (0.11%); charter cities such as Los Angeles, San Francisco, Oakland and San Jose add city transfer taxes that can exceed 1% and rise sharply on high-value sales. Who pays is negotiated and varies by region.

Closing costs are driven by price: 1% to 2% is typical for the government and title portion in most counties, but Los Angeles and Bay Area city taxes, plus high escrow and title fees, can push total buyer costs toward 2% to 3% before prepaids.

Prepayment, spouses and homestead in California

Prepayment. Civil Code § 2954.9 lets the owner of a one- to four-unit owner-occupied home prepay at any time, and permits a prepayment charge only during the first five years of the loan, capped at six months’ interest on the amount prepaid that exceeds 20% of the original principal in any twelve-month period. On a conforming loan the question is moot — the agencies do not accept penalties — but check a portfolio or jumbo note.

Spouses and title. California is a community property state; Family Code § 1102 requires both spouses to join in any instrument that encumbers community real property, so a non-borrowing spouse either signs the deed of trust or executes an interspousal transfer deed to establish separate property.

Homestead. California’s homestead exemption (Code of Civil Procedure § 704.730, rewritten by AB 1885 in 2021) equals the county’s median single-family sale price for the prior year, with a floor of $300,000 and a ceiling of $600,000, both indexed to inflation each year since 2022 — so the protected amount differs by county and rises annually.

The complete state layer — licensing, predatory-lending limits, disclosures, foreclosure — is on mortgage laws in California.

Frequently asked questions

What is the conforming loan limit in California for 2026?

It depends on the county. The 2026 baseline of $832,750 applies in 41 of California’s 58 counties; 17 high-cost counties carry a higher one-unit limit, up to $1,249,125 in Alameda County, Contra Costa County, Los Angeles County and 7 more. The full county table is on this page.

When can I cancel PMI on a conventional loan in California?

Federal law, not California law, sets the dates: request at 80% of original value, automatic at 78%, and in any case at the loan’s midpoint. On the median California price with 5% down at an illustrative 6.5%, that is roughly 10 years and 4 months and 11 years and 3 months respectively if you only make the scheduled payment.

Does California add anything to a conventional loan’s closing costs?

California has no mortgage recording tax and no intangible tax on the note. California counties charge a documentary transfer tax of $1.10 per $1,000 (0.11%); charter cities such as Los Angeles, San Francisco, Oakland and San Jose add city transfer taxes that can exceed 1% and rise sharply on high-value sales. Closing costs are driven by price: 1% to 2% is typical for the government and title portion in most counties, but Los Angeles and Bay Area city taxes, plus high escrow and title fees, can push total buyer costs toward 2% to 3% before prepaids.

Related: Self-employed and buying: how conventional lenders calculate your income, Mortgage underwriting: what happens between pre-approval and clear to close, Mortgage recast: lowering the payment without refinancing, Financing a duplex, triplex or fourplex: down payment, rental income and the rules that change. First home in California: programs and assistance. Hub: Conventional loan.