Conforming vs. High-Balance Conventional Loan: What Is the Difference?
California is one of the most expensive housing markets in the country, which means many buyers need to borrow more than the standard loan limit. Understanding this distinction can save money and open doors you did not know were available.
Standard conforming loan
A conforming loan stays within the loan limits set annually by the Federal Housing Finance Agency (FHFA). For 2025, the standard conforming limit for a single-unit property is $832,750 nationwide. Loans at or below this amount can be purchased by Fannie Mae and Freddie Mac under standard terms and receive the most competitive pricing.
High-balance conventional loan
A high-balance loan exceeds the standard conforming limit but stays within the elevated caps designated for high-cost areas. In many California counties — including Orange County, Los Angeles County, San Diego County, and the Bay Area — the high-balance limit for a single unit is $1,249,125 in 2025. High-balance loans are still conventional — they are not jumbo loans — and still follow Fannie Mae and Freddie Mac guidelines. They carry a small pricing premium over standard conforming loans.
Loan limits by property type (2025)
| Units | Standard Conforming | High-Balance (CA High-Cost Counties) |
|---|---|---|
| 1 unit | $832,750 | $1,249,125 |
| 2 units | $1,066,250 | $1,599,375 |
| 3 units | $1,288,800 | $1,933,200 |
| 4 units | $1,601,750 | $2,402,625 |
What changes at the high-balance level
The full menu of conventional programs is available at the standard conforming level, including 3% down options and the most competitive pricing. High-balance loans have a few restrictions: the 97% LTV option is generally not available, and ARM products may carry additional pricing. A small high-balance loan limit fee also applies.
High-balance vs. jumbo
Once your loan exceeds the high-balance limit for your county, you enter jumbo territory. Jumbo loans are non-conforming, meaning Fannie Mae and Freddie Mac do not purchase them. They follow lender-specific guidelines and are priced differently. Maximizing a high-balance conventional loan before considering jumbo financing is usually the smarter path in California.
Key takeaways
- Standard conforming limit: $832,750 for a single-unit property (2025).
- High-balance limit in California high-cost counties: up to $1,249,125 for a single unit.
- High-balance loans are still conventional — they are not jumbo loans.
- High-balance loans carry a small pricing premium over standard conforming.
- The 3% down option is generally not available on high-balance loan amounts.
- High-balance county designations are set by the FHFA and updated annually.
Ready to explore your conventional loan options? Lendia can walk you through what you qualify for and find the right program for your goals.