California buyers who borrow usually choose among a conventional conforming loan, a jumbo loan above the county’s conforming limit, or a government-backed FHA, VA or USDA loan, sometimes combined with CalHFA down payment assistance. Which one fits depends on the price compared with your county’s 2026 loan limit, your down payment, the property type, and whether you will live in the home.
This page explains how those options compare in the counties Diamond Real Estate Group serves, how financing fits into a California purchase contract, and where to find our detailed financing guides. We coordinate the purchase with your lender and help spot property issues, such as a condominium project, a well and septic system, an ADU or insurance limits, that can affect a loan.
2026 conforming loan limits by county
The Federal Housing Finance Agency sets the maximum size of loans that Fannie Mae and Freddie Mac can buy. For 2026 the baseline limit for a one-unit home is $832,750 and the ceiling in high-cost areas is $1,249,125, announced November 25, 2025. A loan above your county’s limit is a jumbo loan, with its own down payment, reserve and documentation rules set by each lender.
| Counties | 2026 one-unit limit |
|---|---|
| Sonoma | $897,000 |
| Napa | $1,017,750 |
| Monterey | $994,750 |
| Marin, San Francisco, Alameda, Contra Costa, San Mateo, Santa Clara, Santa Cruz | $1,249,125 (high-cost ceiling) |
| Solano, Mendocino, Lake, Sacramento, Placer, Nevada, El Dorado, Yolo | $832,750 (baseline) |
Figures are from FHFA’s 2026 county loan limit list. Limits for two- to four-unit properties are higher in every county; the duplex-to-fourplex financing guide listed below sets them out. FHA limits are set separately by HUD for each county, so ask your lender for the FHA figure that applies to the property.
Comparing the main loan types
| Loan type | Typical fit | Questions to ask the lender |
|---|---|---|
| Conventional conforming | Loan amount at or under the county limit | Down payment options, the cost of mortgage insurance, rate-lock terms |
| Jumbo | Loan amount above the county limit | Minimum down payment, cash reserves, how many appraisals are required |
| FHA | Buyers who want a smaller down payment or more flexible credit standards | The county FHA limit, mortgage insurance costs, condominium approval |
| VA | Eligible veterans, service members and qualifying surviving spouses | Eligibility certificate, entitlement, property condition standards |
| CalHFA first mortgage | Buyers who meet CalHFA program rules | Which CalHFA program pairs with which assistance loan |
| 2 to 4 unit owner-occupied | Living in one unit and renting the others | How much projected rent counts toward qualifying |
| Investor, DSCR or portfolio | Rentals you will not occupy | Whether the loan qualifies on the property’s income, prepayment terms |
| Bridge loan or HELOC | Buying the next home before selling the current one | Cost, term and what happens if the sale takes longer |
On a conventional loan, putting down less than 20 percent usually means paying for mortgage insurance: Fannie Mae’s Selling Guide requires it on conventional first mortgages with a loan-to-value ratio above 80 percent, unless another approved form of credit enhancement is used.
CalHFA and down payment help
The California Housing Finance Agency offers 30-year fixed-rate first mortgages in FHA, VA, USDA and conventional versions. CalHFA does not lend directly to consumers; it works through approved lenders that qualify borrowers and make the loans. Its MyHome Assistance Program is a deferred-payment junior loan of up to 3.5 percent of the purchase price or appraised value, whichever is less, with an FHA first mortgage, or up to 3 percent with a conventional one.
CalHFA’s Dream For All Shared Appreciation Loan provides down payment or closing cost help, paired with a Dream For All conventional first mortgage, and at least one borrower must be a first-generation homebuyer. It is repaid, with a share of the home’s appreciation, when the home is sold or transferred or the first mortgage is paid in full. Funding rounds, income limits and eligibility change, so confirm current terms with a CalHFA-approved loan officer before you plan around a program.
How financing fits into the purchase contract
- Before the offer. Get a preapproval based on reviewed documents and confirm the lender will finance the property type you are considering.
- In the offer. Decide how long the loan and appraisal contingencies should run, whether to ask for a seller credit, and whether your offer depends on selling another home.
- During escrow. Order the appraisal promptly, deliver documents the lender asks for, and bind homeowners insurance, which mortgage lenders generally require before funding and which can take time to arrange in wildfire areas.
- Before closing. Federal rules described by the Consumer Financial Protection Bureau give you the Closing Disclosure three or more business days ahead of closing, which leaves time to question any cost that moved since the Loan Estimate.
For the full order of events from offer to keys, see our step-by-step California home-buying process. If you own a home now, a home valuation helps you size the equity available for a down payment or a bridge loan.
Financing guides by situation
Our financing coverage sits with the topic it belongs to. These are the guides to read for each situation.
Understand your loan options
- Types of home loans explained: conventional, jumbo, FHA, VA and USDA loans, plus ARMs, bridge and reverse loans, for California buyers.
- Mortgages and affordability in Sonoma County: loan limits, monthly payment math, CalHFA help and rate buydown strategies for Sonoma County buyers.
Financing inside your purchase contract
- Loan contingencies: timelines, what lender approval really means, and what you commit to when you remove the contingency.
- Appraisal contingencies: covering a low appraisal, how appraisal gap language is written, and requesting a reconsideration of value.
- Seller concessions and credits: what a seller credit can pay for and the limits lenders put on it.
- Homeowners insurance during escrow: getting coverage in place in wildfire country so insurance does not hold up your loan.
Buy before you sell
- Buy before you sell in California: bridge loans, HELOCs, contingent offers and rent-backs compared.
- Home sale contingencies: how an offer that depends on selling your current home works, and how sellers respond to one.
2 to 4 units and investment property
- Financing a duplex, triplex or fourplex: FHA, VA and conventional rules for owner-occupants, including the FHA self-sufficiency test.
- House hacking in the North Bay: using rent from a second unit, an ADU or rooms to help carry the mortgage.
- Second home vs. investment property: how lenders, the IRS and California classify a property you will not live in full time.
- DSCR loans: qualifying a rental on its debt-service coverage instead of your personal income.
- Apartment building loans: agency, bank and small-balance financing for buildings of five or more units.
- Seller financing: carryback loans, required disclosures and the risks for buyers and sellers.
Commercial, agricultural and distressed property
- SBA 504 vs. 7(a): the two SBA programs for a business buying its own building.
- Mixed-use buildings: FHA, Fannie Mae and SBA rules for buildings with commercial and residential space.
- Vineyard financing: Farm Credit, bank and seller loans for Napa and Sonoma vineyards.
- Financing a bank-owned home: loan options and property-condition issues when buying an REO.
How Diamond helps with financing
Diamond helps you match the loan to the property before you write an offer, flags conditions that commonly trouble lenders, and keeps the lender, appraiser, insurer and escrow on the same schedule. For multifamily, commercial and vineyard purchases, we help assemble the rent rolls, leases and operating history lenders ask for. Diamond may refer you to partners we work with; you’re free to choose any provider.
This is general information, not financial or lending advice; talk to a licensed mortgage loan originator about your situation.
Questions people ask
What is the 2026 conforming loan limit in Sonoma County?
For a one-unit home it is $897,000, according to FHFA’s 2026 county list. The limits for two, three and four units are higher; our 2 to 4 unit financing guide lists them.
What counts as a jumbo loan in Marin or San Francisco?
In 2026, a one-unit loan above $1,249,125, which is the high-cost ceiling that applies in both counties. Jumbo terms vary by lender, so compare written offers.
Can rent from a duplex help me qualify?
Often, yes. Lenders can count part of the rent from the other units under their program rules, and on three- and four-unit properties FHA also applies a self-sufficiency test, which projected rent must pass. Our 2 to 4 unit financing guide explains the details.
Does CalHFA lend money directly?
No. CalHFA works through approved lenders, which qualify borrowers and make the loans. Its MyHome Assistance Program is a deferred-payment junior loan of up to 3.5 percent with an FHA first mortgage, or 3 percent with a conventional one, of the purchase price or appraised value, whichever is less.
When will I see my final loan terms?
The Closing Disclosure, which the lender has to deliver no later than three business days before you close, shows the final rate, fees and cash needed. Check each figure against the Loan Estimate you received earlier.
Can I buy my next home before selling my current one?
Yes, with a bridge loan, a HELOC, a contingent offer or enough cash and income to carry both homes. Each option has different costs and risks, which our buy-before-you-sell guide compares.
If you want to line up a loan with a home search, contact Diamond to plan your financing and purchase together.
Sources & notes
- Federal Housing Finance Agency: FHFA announces conforming loan limit values for 2026 (Nov. 25, 2025)
- Federal Housing Finance Agency: Full county loan limit list, 2026 (CSV)
- California Housing Finance Agency: Homebuyer programs
- California Housing Finance Agency: Dream For All Shared Appreciation Loan
- Fannie Mae Selling Guide: B7-1-01, Provision of Mortgage Insurance
- Consumer Financial Protection Bureau: What is a Closing Disclosure?
Last reviewed October 2026 by Matthew Martinez.
